Mid-cap Digi International (NASDAQ:DGII), Lamb Weston Holdings (NYSE:LW) and Wingstop (NASDAQ:WING) all climbed on heavy trading volume recently, even as the broader market closed lower. .
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Overall, the mid-cap is outperforming the S&P 500. The SPDR S&P Midcap 400 ETF (NYSEARCA:MDY) is up 5.53% so far this week, while its large-cap counterpart, the SPDR S&P 500 ETF (ASX:SPY), is up 4.48%.
Mid-caps are typically those that have a market capitalization between $2 and $10 billion. You often have fewer shares in the float than you do with a larger stock. These characteristics make mid-caps somewhat more volatile and riskier than large-caps, at least in the context of the broader asset classes.
Digi International advanced 2.34% in nearly triple average trading on Wednesday, reaping the benefits of its recent outperformance, which includes the following gains:
1 month: +16.19% 3 months: +58.88 year-on-year: +53.32
The Minnesota-based company specializes in the Internet of Things, which involves connecting products, apps, and services through a variety of wireless devices. Those devices can include factory and industrial settings; home applications, such as appliances and security systems; and automotive gear, among many other examples.
Digi International rose 15.66% on August 4, following the company’s fiscal third-quarter report in which it topped the earnings and revenue sequences, as you can see using MarketBeat data on the stock.
Earnings growth accelerated from 13% to 80% over the past two quarters, while revenue growth accelerated from 8% to 31% over the past three quarters. Its three-year annualized earnings growth rate is 34%, while revenue has grown by 12%.
That level of fundamental strength is driving stock prices up. The increase in fourth quarter guidance also helps.
On a technical basis, the stock is in a buy range, but continues to be aware of the broad-market volatility that could drag it down, and any stock could turn sharply lower.
Lamb Weston is in the decidedly formidable business of producing, packaging and distributing frozen potato products, as well as through private-label brands to consumers. But potatoes are clearly in high demand: The stock advanced 4.19% on Monday after a better-than-expected fiscal first quarter.
Earnings per share of $0.75 increased 317% compared to the year-ago quarter. Lamb Weston’s MarketBeat earnings data showed the company lost $0.26 per share. Revenue was slightly disappointing, coming in at $1.13 billion, versus analyst expectations of $1.14 billion. Still, it was a year-over-year increase of 14%.
Other packaged food stocks have performed well recently, and the industry is among the leaders overall. On Thursday, large-cap food company ConAgra (NYSE:CAG) reported earnings and revenue, topping Wall Street’s views.
Lamb Weston shares held on Wednesday’s gains, with gains in Thursday morning trading. Analysts expect the company to report earnings growth of 36% for the full year, which is FY2023. Next year, it is expected to increase by 32% to $3.72. Marketbeat data shows, such potential is attracting institutional buyers.
Another mid-cap shining profit related to food for the week is restaurant franchisor Wingstop.
There was no specific news from the company, according to MarketBeat analyst data, but there has been a lot of positive attention from Wall Street lately. In the past month, Stephens began coverage with an overweight rating, and Wedbush increased its price target with an outperform rating.
As noted earlier by MarketBeat, Wingstop is one of the food-related stocks that is capitalizing on consumers’ desire to continue shopping for food, even on other discretionary items. make cuts.
The consensus rating is “moderate buy” with a price target of $138.65, a potential increase of 4.21%.
The company is set to report its fiscal third quarter before the opening bell on October 26. Analysts expect earnings of $0.35 per share on revenue of $89.30 million. They will grow on both the top and bottom lines.
Earnings data compiled by MarketBeat shows Wingstop outperformed earnings scenes in the most recent quarter, although revenue lagged. This did not deter investors from accumulating, as margins had come in highly up-front views.