4 Mid-Cap Stocks To Scoop Up When The Market Sells-Off Again

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Over the past few weeks, changes in the stock market and investor sentiment have come to the fore. The euphoria around big tech has partly cooled off, and other sectors, such as energy, retail, and travel, are seeing more action. There is also much market uncertainty due to rising bond yields and the threat of rising inflation.

In this environment, investors need to exercise caution in their stock picking. We believe mid-caps stocks are ideal if the market pullback continues. They do not offer the same stability as their large-cap brethren, but their response to market volatility is relatively restrained. Furthermore, mid-cap stocks deliver diversification in a portfolio and they often represent a good risk-return trade-off.

Mid-cap stocks attracted much less attention than large-cap stocks or hot start-ups last year, but many have a unique appeal and have performed well amid the pandemic. Arrow Electronics, Inc. (ARW), Jabil Inc. (JBL), Herbalife Nutrition (HLF), and Sanderson Farms (SAFM) are four mid-cap stocks that look promising and we think are poised to deliver strong returns in the long run.

Arrow Electronics, Inc. (ARW)

ARW is involved in providing products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions in the Americas, Europe, Africa, Asia Pacific, and the Middle East. Global Components and Global Enterprise Computing Solutions are the two segments through which it operates.

ARW has entered into a North American distribution agreement with Park Place Technologies, a data center hardware maintenance provider. ARW will help Park Place to expand its services within its Discover, Monitor, Support, and Optimize (DMSO) strategic approach to infrastructure management.

ARW’s revenue for the fourth quarter ended Dec. 31, 2020, climbed 15% year-over-year to $8.45 billion. A 54% growth in the Asia-Pacific components sales for the quarter led its revenue higher. Its EPS for the quarter rose to $3.89 from $1.36 posted in the same period last year. Analysts expect ARW’s revenue for the year ending March 31, 2021 to be $8 billion, representing a 24.9% year-over-year decline. Its EPS for the quarter is expected to surge 135.3% to $2.28.

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