Top 5 Mid-Cap Stocks to Consider for 2019: Expert Insights for Informed Investing

Investing in mid-cap stocks can offer both excitement and potential returns, especially for those looking for a blend of growth and stability. In 2019, five specific mid-cap stocks stood out, offering substantial opportunities for investors. However, it's crucial to approach stock market investments with caution and to perform thorough due diligence before making any decisions.

Market Conditions and Risks

Currently, the global market faces potential risks, including geopolitical emergencies and economic disasters. Additionally, the possibility of a bank failure could destabilize the market. These factors highlight the importance of maintaining a cautious approach and conducting personal analyses.

As a note, my opinions are based on individual investment analysis and should not be considered professional advice. Brokers and financial advisors should be consulted for comprehensive guidance.

Selected Mid-Cap Stocks for 2019

Ashok Leyland with a target price of ￡185 Apollo Tyres with a target price of ￡390 Mahanagar Gas with a target price of ￡1180 Kubota with a target price of ￡2165 City Union Bank with a target price of ￡230

These stocks are part of a broader mid-cap segment, representing companies with market capitalizations between ￡2 and ￡10 billion. They offer a mix of potential for high returns and relative stability compared to large-cap and small-cap stocks.

Understanding Mid-Cap Stocks

A mid-cap company is defined by its market capitalization, falling within the range of ￡2 to ￡10 billion. This classification reflects the company's position in the market, placing it between the larger and smaller ends of the spectrum.

Reasons to Buy Mid-Cap Stocks

Business Cycle Expansion: During the expansion phase of the business cycle, mid-cap companies benefit from stable growth, low-interest rates, and cheap capital. This environment allows these companies to invest in capital equipment, mergers, and acquisitions, driving their growth. Risk Management: Compared to small-cap businesses, mid-cap companies are considered less risky. They have a longer track record, making them more stable and easier to research. This makes them a safer bet during economic downturns, as they are less likely to go bankrupt. Performance Compared to Large-Caps: Mid-cap companies, while not as stable as large-cap companies, offer higher returns and lower risk compared to small-cap stocks. Over the past decade, mid-cap stocks have outperformed both small and large-cap stocks, delivering impressive returns.

Other Mid-Cap Stocks to Consider

For 2019 and 2020, other mid-cap stocks worth exploring include:

Confidence Petroleum Future Consumer JK Paper Karnataka Bank CRISIL

While these stocks promise potential, it is essential to conduct thorough research and due diligence before making any investment decisions. As with all stocks, there are risks involved, and performance cannot be guaranteed.

Stay informed, stay cautious, and always consult with a financial advisor to make the best investment choices.