4 Mid-Cap Stocks That Bucked the Downward Trend and Surged More Than 10% Last Week

The stock market has been volatile lately due to the resurgence of COVID-19 cases, rising inflation, and simmering geopolitical tensions. This has caused a downtrend for several mid-cap stocks, which are typically more sensitive to market volatility than large-cap stocks.

However, continuing efforts to increase the efficacy of COVID-19 vaccines (including initiatives to administer booster shots) and lower-than-expected inflation data for August have renewed investors’ positivity about a continuing economic recovery. This resulted in a trend reversal for some mid-cap stocks last week.

EnLink Midstream, LLC (ENLC), Sharecare, Inc. (SHCR), SmileDirectClub, Inc. (SDC), and Crescent Point Energy Corp. (CPG) gained more than 10% in price last week. So, we think it could be wise to add these stocks to one’s  watchlist.

EnLink Midstream, LLC (ENLC)

With a market capitalization of $3.09 billion, ENLC in Dallas, Tex., is  a midstream energy company that gathers, transmits, processes, and markets natural gas, crude oil, and condensate and operates gathering and transportation pipelines, processing plants, fractionators, barge, and rail terminals. It also offers brine disposal services.

In its sustainability report, released on May 4, 2021, ENLC said it plans to execute substantial emissions reduction strategies that will help the company achieve net-zero emissions by 2050 and minimize its impact on climate change. This would further ENLC’s role in the ongoing energy transition to less carbon-intensive energy production. Because  nearly 90% of ENLC’s business is focused on lower-emitting natural gas and natural gas liquids, lessening the carbon impact of these critical fuel sources would help it capitalize on the growing  demand.

ENLC’s total revenues for its fiscal second quarter, ended June 30, 2021, increased 88.8% year-over-year to $1.41 billion. The company’s operating income came in at $77.3 million, up 9.2% from the prior-year period. It had $32.8 billion in cash and cash equivalents as of June 30, 2021.

Analysts expect ENLC’s EPS to increase 29.9% year-over-year in the current quarter, ending September 30, 2021, to $0.04. The $1.34 billion consensus revenue estimate for the current quarter represents a 44.4% gain from the prior-year period. Analysts expect the stock’s EPS to grow at a 124.7% rate per annum over the next five years. The stock surged 11.9% in price last week (September 10 through September 17).

Sharecare, Inc. (SHCR)

SHCR operates as a digital healthcare platform company worldwide, providing access to doctors, health plans, employers, health management tools, information, and others. In addition, the Atlanta, Ga.-based company develops and tests programs that tackle the biggest health burdens, such as diabetes, smoking, financial stress, and COVID-19. It has a $2.94 billion market capitalization.

Last month, SHCR unveiled enhancements to its suite of solutions for pharmaceutical and life sciences brands to address consumers' unique health needs and the growing utilization of virtual well-being management tools. With these enhancements, SHCR is looking forward to new and evolved collaborations with its pharmaceutical and life sciences partners.

On August 11, 2021, SHCR closed the acquisition of CareLinx, the nation’s leading digital on-demand platform for tech-enabled care providers. CareLinx delivers intermittent on-demand personal care services in people’s homes while leveraging mobile technology to facilitate rich data capture, population health analytics, and real-time care coordination with remote clinical teams. The acquisition should strengthen SHCR’S digital platform for providing telehealth and home-based services.

For its fiscal second quarter, ended June 30, 2021, SHCR’s revenue increased 25.9% year-over-year to $98.46 million. As of June 30, 2021, the company had $42.84 million in cash and cash equivalents. The stock gained 22.3% in price last week.

Click here to checkout our Healthcare Sector Report for 2021

SmileDirectClub, Inc. (SDC)

With a market capitalization of $2.52 billion, SDC in Nashville, Tenn., is  an oral care company that offers clear aligner therapy treatment, impression and whitening kits, retainers, SmileSpa, and various ancillary oral care products. The company provides SmileCheck, which is a teledentistry platform for doctor monitoring and communication.

At the beginning of the fourth quarter, SDC plans to launch premium clear aligners, a telehealth platform, and an award-winning whitening system at its first France SmileShop in Paris. It will mark SDC’s entry into leading markets for innovative, effective, convenient, accessible, and affordable oral care products.

On June 16, 2021, SDC launched two new oral care products, The SmileDirectClub Travel Toothbrush and The SmileDirectClub 5-Piece Oral Care Travel Kit, including a full-size travel toothbrush, travel toothpaste, whitening dental floss, and hand sanitizer designed for summer travel. These additions to its award-winning oral care portfolio should see huge demand in the coming months.

SDC’s total revenues for its fiscal second quarter, ended June 30, 2021, increased 62.7% year-over-year to $174.18 million. The company’s gross profit was  $128.32 million, representing a 120.1% year-over-year improvement. As of June 30, 2021, the company had $376.65 million in cash.

For the current quarter, ending September 30, 2021, analysts expect SDC’s revenue to be $183.67 million, up 25.6% from the prior-year period. The stock’s EPS is expected to grow at a 34.8% rate per annum over the next five years. The stock rallied 25.4% in price last week.

Click here to checkout our Healthcare Sector Report for 2021

Crescent Point Energy Corp. (CPG)

Headquartered in Canada, CPG explores, develops, and produces light and medium crude oil and natural gas from reserves in Western Canada and the United States. The company has a $2.18 billion market capitalization.

On April 1, 2021, CPG acquired Shell Canada Energy's Kaybob Duvernay assets in Alberta for $900 million. This strategic acquisition enhances CPG’s core principles of balance sheet strength and sustainability.

CPG’s total oil and gas revenue increased 226.7% year-over-year to $750.70 million for its fiscal second quarter, ended June 30, 2021. The company’s adjusted net income came in at $117.60 million for the quarter, compared to a $27.90 million  loss in the prior-year period. Its adjusted EPS came in at $0.20 versus a $0.05 loss per share in the prior-year period. It had $32.8 billion in cash and cash equivalents as of June 30, 2021.

Analysts expect CPG’s EPS to increase 105.7% year-over-year in the current quarter, ending September 30, 2021, to $0.17. The  $549 million consensus revenue estimate for the current quarter indicates a 67.3% gain from the prior-year period. The stock gained 14.8% in price last week.

ENLC shares were trading at $6.30 per share on Tuesday afternoon, down $0.02 (-0.32%). Year-to-date, ENLC has gained 80.13%, versus a 17.37% rise in the benchmark S&P 500 index during the same period.

Sweta is an investment analyst and journalist with a special interest in finding market inefficiencies. She’s passionate about educating investors, so that they may find success in the stock market.

More...