Many mid-cap stocks have slightly outperformed the S&P 500 index year-to-date. In fact, the iShares Core S&P Mid-Cap ETF is up 4.1% YTD versus the S&P 500 being up 2%. I believe that it is now worth taking a deeper look into these mid-cap stocks as there has been a divergence between mid-cap stocks and their larger-cap peers.
These stocks have much more upside potential and are safer than those in the small-cap range. However, mid-caps can be defined as stocks that trade with a valuation of anywhere from $2 billion to $10 billion. You can find both volatile and low-beta names here.
I will be focusing more on the volatile chunk of this market. I think there are many stocks here capable of delivering multibagger gains down the line. Here are three.
This post originally appeared at Money Morning.