3 Best High-Growth Mid-Cap Stocks to Buy in September 2024

Investors are optimistic that small- and mid-cap stocks will rise this year after a difficult 2023 as the focus shifts away from the AI-focused Magnificent Seven. A number of leading experts have noted a widening of the stock market of late, with some capital being rotated out of large-cap technology stocks and into other areas of the economy. For investors in small- and mid-cap stocks, this is definitely a good thing.

Of course, there is some debate as to whether or not this trend will continue. I think this debate is healthy. But it’s abundantly clear to most investors that while companies at the top of the food chain will likely continue to see market-beating growth, it’s also true that the valuation gap has widened to an extent that warrants some exploration .

For investors looking to broaden their portfolios from strictly large-cap names to some smaller or mid-cap companies, here are three stocks I think are worth keeping on the radar right now. These three companies are currently on my watch list and I would invite investors to consider adding them to theirs.

Key points about this article:

• A rotation of large-cap tech stocks and smaller or mid-cap growth stocks looks set to continue.
• For investors looking to gain exposure to some of the fastest-growing mid-cap companies on the market, here are three great options to consider.
• If you’re looking for action with huge potential, be sure to grab our free copy brand new “Next NVIDIA” report.. It has a software stock where we are sure it has 10x potential.

GitLab (GTLB)

Two people wearing GitLab t-shirts

GitLab (NASDAQ:GTLB) is an open-source provider of a cloud-neutral DevSecOps platform. The company has benefited from immense flexibility and a broad customer base, supporting developers everywhere in their quest for accessible code and answers to key questions. Integrating AI into the company’s business model, currently using Anthropic’s Claude 3.5, this is a company that offers a truly world-class dataset that can certainly leverage AI’s ability to improve code development tools on future.

For investors looking for a mid-cap stock with a competitive edge, I’d say GitLab is definitely a stock to consider. The company has seen significant growth while demonstrating iron cost discipline. This has led to increased profitability and a valuation that reflects high expectations for future growth. At 12.9 times sales, this stock is anything but cheap, and the company needs to sustain strong growth and operating leverage to rise to this multiple over time.

I believe the company is well positioned to meet these challenges, thanks to its strong fundamentals reflected in GitLab. Results Q2. In this report, GitLab reported 31% revenue growth, with adjusted EPS rising to $0.15 from $0.01. The company beat forecasts, increasing its annual revenue and profit guidance. And to top it off, the company’s adjusted operating margins improved from -3% to 10%. GitLab also outperformed Gartner Magic Quadrant for DevOps Platformseclipsing both software competitors and big cloud firms.

For those looking for a long-term holding among mid-cap stocks, GTLB stock is one to consider here.

Sarepta Therapeutics (SRPT)

Sarepta logo

Sarepta Therapeutics (NASDAQ:SRPT) remains a top biotech stock I think investors may want to keep an eye on. I’m not the only one who thinks so. The analysts from BMO Capital Markets recently reaffirmed their Outperform rating on SRPT stock, giving a price target of $200. Analysts anticipate that Sarepta’s transition to suspension production for Elevidys will be completed by early 2027 without significant delays or regulatory issues. The firm views this transition positively and believes Sarepta stock is currently undervalued based on historical prices and future sales forecasts.

The company’s risk/reward profile appears to be reasonable given its huge prospects in its drug pipeline. The company has a future FDA review of Elevidys for Duchenne muscular dystrophy. If all goes well, this is a stock that could certainly show up on any kind of positive news.

Finding a biotech stock with a key catalyst is one thing. But of course these approval processes are binary events. There’s significant risk with this name, and while accelerated approval could certainly happen, it’s unclear whether the market values ​​too much excitement. That’s because a The subsequent Phase 3 for the company’s key drug failed to meet its primary endpoint, leading a non-binding advisory committee to oppose approval. Despite this, a binding committee later approved Elevidys, overriding earlier objections from internal teams.

I think this stock is an intriguing bet with higher risk for those with the risk tolerance to make such an investment.

BridgeBio Pharma (BBIO)

Researchers in a laboratory environment

BridgeBio Pharma (NASDAQ:BBIO) is another major mid-cap biotech investor that I’m watching closely right now. Like Sarepta, BridgeBio certainly has some catalysts on the horizon that I think are worth paying attention to. As of this writing, these are two of my top picks as the more speculative plays in this sector.

The company is currently looking FDA approval for a drug targeting ATTR-CM, with potential success by 2030. Despite being a secondary option to other drugs on the market, the company is also advancing infigratinib for achondroplasia, seen as a future blockbuster. Amid buyout rumors, separate merchandising deals are likely.

The company is gaining attention for its innovative gene-based therapies for cancer and genetic disorders. Its pipeline includes advanced candidates such as Acoramidis and Infigratinib. Shares are up 10% over the past 90 days, analysts predict further gains. With promising treatments and future data, BridgeBio presents an attractive investment opportunity.

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