Key points
-
Midcap stocks are up about 12% YTD in 2024.
-
The top mid cap stock of 2024, GeneDx, has returned more than 2,600%.
-
SoundHound AI has returned nearly 800% YTD.
These high-fliers are on the leading edge of innovation.
While large caps and small caps get more attention, mid cap stocks have quietly been the best performers over the long term.
Over the last 25 years dating back to 1999, mid caps have beaten both large and small cap stocks, although large caps have slightly better performance in the 20-year and 10-year windows. Mid cap stocks have also been the best over the past 30 years.
This year, large caps have dominated as the S&P 500 has returned nearly 24%, but mid caps as measured by the S&P 400 have been solid, up 12% as of December 18.
Mid cap stocks, which generally range in market cap from $2 billion to $10 billion, are typically more volatile than large caps, with a wider range of performance. You can certainly see that at the top, as the top 5 mid cap stocks of 2024 posted some huge returns.
GeneDx, up 2,650%
GeneDx (NASDAQ: WGS) is a biopharma stock that specializes in genome and exome testing, diagnostics, and sequencing. It started the year trading at just under $3 per share and right now it is up to around $75 per share, a ridiculous 2,650% increase year-to-date.
GeneDx used to be called Sema4, which acquired GeneDX in 2022. It took the GeneDX name, as the company specialized in the growing field of genome and exome sequencing and diagnostics. GeneDX soon became one of the leaders in the field, particularly in exome sequencing, which helps doctors understand what is causing symptoms or disease in a patient.
GeneDx has sequenced more than 500,000 clinical exomes and has an 80% market share among ordering clinicians. In the most recent quarter, it grew revenue by 77%, reported adjusted gross margins of 64%, and reached profitability for the first time, with adjusted net income of $1.2 million. It also raised its fiscal 2024 revenue guidance.
Given the meteoric rise, investors should be a little wary, at least in the near-term. Recently, some of the executives sold shares. But still, GeneDx looks to have a bright future.
SoundHound AI, up 780%
SoundHound AI (NASDAQ: SOUN) is currently the second best performing stock in the mid cap universe, up around 780% YTD.
SoundHound AI, as the name implies, is an AI stock that specializes in AI voice technology that is used in restaurants, cars, at call centers, and by financial services companies, among other applications. It has exploded in recent months, emerging as one of the leaders in this rapidly growing field.
The company has been rapidly growing along with it, generating an 89% revenue increase in the most recent quarter and raising its revenue guidance for 2025. It now expects $155 million to $175 million in revenue in 2025, which would be 80% higher than 2024.
SoundHound is also unprofitable, but the company expects to achieve adjusted EBITDA profitability in 2025. And like GeneDx, it is a leader in a high-growth industry, so its long-term prospects are tremendous. But it is also extremely overvalued.
NuScale Power, up 475%
NuScale Power (NYSE: SMR) is a company that makes small modular reactors (SMR) that generate nuclear power. The stock has surged some 475% YTD as there has been a resurgence in the use of nuclear power. According to the International Atomic Energy Association, nuclear power has expanded for four years in a row and nuclear capacity is expected to increase by 2.5 times by 2050.
This is because nuclear power is considered clean energy and will be a key part of achieving worldwide net zero greenhouse gas emissions.
Now, NuScale is not a typical nuclear energy provider. It specializes in small modular reactors (SMR), which are cheaper and easier to install. Experts say SMRs are the future of nuclear power and NuScale is the industry leader in SMR and the only U.S. company to receive regulatory approval for an SMR plant. It had to cancel that flagship project because it didn’t have enough subscribers, but it is developing SMRs for several plants around the country.
While NuScale may be the future of nuclear power, it doesn’t have a lot of revenue or earnings in the present, so its stock price gains are mostly speculative based on its potential. But this is one stock to watch every quarter for its incremental growth.
Janux Therapeutics and Core Scientific round out the top five
Janux Therapeutics (NASDAQ: JANX) is the fourth best-performing mid-cap stock so far this year, with shares up 432% to about $58 per share. Janux is a company that develops immunotherapies that seek to attack and kill tumors and generate tumor-specific immune responses.
Core Scientific (NASDAQ: CORZ) is a Bitcoin mining company that recently branched out to develop AI data centers. The stock price has soared since it converted some of its Bitcoin mining facilities to AI data centers, capitalizing on the boom in that space. Core Scientific stock is up about 325% YTD.
Investors should be mindful that mid-cap stocks, especially those of unprofitable companies in developing, high growth industries, can be volatile. Do additional research on these and other stocks before investing.
VALUEWALK LLC is not a registered or licensed investment advisor in any jurisdiction. Nothing on this website or related properties should be considered personalized investments advice. Any investments recommended here in should be made only after consulting with your personal investment advisor and only after performing your own research and due diligence, including reviewing the prospectus or financial statements of the issuer of any security. VALUEWALK LLC, its managers, its employees, affiliates and assigns (collectively “The Company”) do not make any guarantee or warranty about the advice provided on this website or what is otherwise advertised above. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. The Company disclaims any liability in the event any information, commentary, analysis, opinions, advice and/or recommendations provided herein prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses.
Recommended content
Editors’ Picks

GBP/USD holds above 1.2600 after strong UK inflation data
GBP/USD holds steady above 1.2600 in the European morning on Wednesday after the data from the UK showed that the annual CPI inflation climbed to 3% in January from 2.5% in December. Market focus shifts to mid-tier US data and FOMC Minutes.

EUR/USD holds positive ground near 1.0450, FOMC Minutes in focus
The EUR/USD pair posts modest gains to around 1.0450 during the Asian trading hours on Wednesday, bolstered by the weakening of the US Dollar. However, tariff concerns and tense Russia-Ukraine negotiations might boost the Greenback and cap the upside for the major pair.

Gold price recovers early lost ground; holds steady near record high amid trade war fears
Gold price attracts some dip-buying as trade war fears continue to underpin safe-haven assets. Fed rate cut bets keep the USD bulls on the defensive and further lend support to the XAU/USD. A positive risk tone might cap the commodity as traders await the release of the FOMC minutes.

Maker Price Forecast: MKR generates highest daily revenue of $10 million
Maker (MKR) price extends its gains by 6%, trading around $1,189 on Wednesday after rallying more than 20% so far this week. Artemis data shows that MKR generated $10 million in revenue on February 10, the new yearly high in daily revenue.

Rates down under
Today all Australian eyes were on the Reserve Bank of Australia, and rates were cut as expected. RBA Michele Bullock said higher interest rates had been working as expected, slowing economic activity and curbing inflation, but warned that Tuesday’s first rate cut since 2020 was not the start of a series of reductions.

The Best Brokers of the Year
SPONSORED Explore top-quality choices worldwide and locally. Compare key features like spreads, leverage, and platforms. Find the right broker for your needs, whether trading CFDs, Forex pairs like EUR/USD, or commodities like Gold.