Mid Cap companies could be a good alternative for investors that seek long term capital growth.
In this case from a value investor point of view I put more emphasis on high quality mid-sized companies selling at discount.
Let’s try to do a selection using the following criteria :
- ranked in the Russell Mid Cap Companies;
- competitive advantage ≥ narrow
- quality companies with healthy balance sheet and positive free cash flow
- earning growth estimate next 5 yrs : positive
- trading lower than its benchmark ( Russell Mid Cap Value Index)
- trading lower than its Price/Fair Value ( Fair Value Estimate is a Morningstar data point)
Good reading and do your own due diligence before investing.