2 Mid-Cap Stocks That Could Shine in the Back Half of 2024

Consider buying Cargojet (TSX:CJT) and another top mid-cap stock while the smaller firms roll over a bit.

| More on:

While selling is always a bad idea when you’re in a state of shock and anxiety, I’d argue that excessive buying can also be a bad idea, especially if you find yourself exhausting your liquidity reserves too early in a selloff.

Indeed, maintaining liquidity on the way down can be wise, especially if you’re a new investor who’s just starting to get used to excessive levels of volatility. Timing bottoms is hard, if not impossible, to do. Instead, take timing out of the equation by committing to buying a little bit after every period.

That way, you’ll be able to sleep just a bit more comfortable knowing you have a game plan going into a selloff, whether it ends up a mere correction or something far worse (think a bear market or historic market crash).

In this piece, we’ll look at two great mid-cap stocks to buy if you want to further diversify your portfolio in the face of the latest market-wide selloff. Undoubtedly, we got a hint of a growth-to-value rotation just a few weeks ago.

Though mid-cap stocks have been unable to escape the pressure this time around, I think that there’s ample value to be had in the mid-cap universe right now (especially in Canada) now that the Russell 2000 (a mid-cap index) is right back to where it was before its “Great Rotation” surge at the start of July.

Without further ado, let’s check in with the two TSX mid-caps that stand out as intriguing gems.

Cargojet

Cargojet (TSX:CJT) stock has been rolling over again, with shares now down close to 15% from their 52-week highs. Undoubtedly, recent quarters have been really nothing to write home about, and with macro headwinds and recession fears picking up traction again, there’s a good chance that consumer digital spending could stay challenged for quite some time. As a provider of overnight shipping solutions, Cargojet could really use a healthier consumer.

While faster rate cuts would certainly help the cause, investors should be ready for nothing short of turbulence from the economically sensitive cargo airline. In any case, I find shares to be quite cheap, especially given its impressive fleet and positioning ahead of the next cyclical upswing. Whenever shoppers come back online, CJT stock could surge suddenly.

Until then, perhaps it makes sense to nibble into the name while it’s down close to 50% from its peak over matters that seem overblown.

Created with Highcharts 11.4.3Cargojet PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

StorageVault Canada

StorageVault Canada (TSX:SVI) is a $1.7 billion self-storage firm that’s still well off (close to 35%) in its early 2022 highs. I think the continued weakness, primarily related to the higher-rate climate, is just a tad overdone.

Indeed, self-storage solutions could be in for an upswing should people find themselves downsizing (in response to the rising costs of living). And if rates fall and consumers feel a bit better, StorageVault also stands to benefit, given it’ll take less of an interest hit from its debt load.

In any case, SVI stock is a well-run mid-cap firm to keep on your radar while it’s down and out. It’s still a “growthy” play and one that could yield results over a longer-term horizon.

Created with Highcharts 11.4.3StorageVault Canada PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Joey Frenette has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cargojet. The Motley Fool has a disclosure policy.

More on Investing

An investor uses a tablet
Stocks for Beginners

The Smartest Canadian Stock to Buy With $250 Right Now

Are you looking for the smartest Canadian stock to buy right now? Consider this gem and avoid market volatility.

Read more »

Dividend Stocks

3 Canadian REIT Stocks to Buy and Hold for the Next Quarter-Century

These three Canadian REITs trade cheaply and are highly reliable, making them some of the best stocks you can buy…

Read more »

Electricity transmission towers with orange glowing wires against night sky
Investing

Fortis Just Might Be the Best Canadian Dividend Stock to Buy in April

Let's dive into a few reasons why Canadian utility giant Fortis (TSX:FTS) still looks like a screaming buy heading into…

Read more »

A train passes Morant's curve in Banff National Park in the Canadian Rockies.
Dividend Stocks

1 Practically Perfect Canadian Stock Down 24% to Buy Now and Hold for Life!

CNR stock is a top Canadian stock for investors, especially with shares down on the TSX today.

Read more »

a man relaxes with his feet on a pile of books
Investing

Got $7,000? How I’d Spread It Across 5 Blue-Chip Stocks for an Investing Foundation

Spreading $7,000 across these five blue-chip stocks provides a solid foundation for long-term financial success.

Read more »

The letters AI glowing on a circuit board processor.
Tech Stocks

How I’d Allocate $10,000 to AI Stocks in Today’s Market

Shopify (TSX:SHOP) is one of Canada's most compelling AI stocks.

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Retirement

Top Canadian Value Stocks I’d Hold in My TFSA for the Next Decade

These Canadian value stocks have significant growth potential and will enhance your TFSA portfolio’s return in the long run.

Read more »

Canada national flag waving in wind on clear day
Dividend Stocks

The Best Canadian Stocks to Buy Right Away With $30,000

If you have $30,000 you're willing to invest, these are some of the first Canadian stocks to consider on your…

Read more »