3 Mighty Mid-Cap Stocks to Buy for the Rest of 2022

NYSE: AYI | Acuity Brands, Inc. News, Ratings, and Charts

AYI – Despite another decline in GDP, the major indices are expected to post their best month since November 2020. And irrespective of the market volatility, mid-cap stocks are raking in significant gains. Thus, we think it could be wise to scoop up shares of mighty mid-cap stocks Acuity Brands (AYI), Boyd Gaming (BYD), and Casey’s General Stores (CASY) for the rest of 2022. Keep reading….

The U.S. GDP witnessed another decline of 0.9% in the second quarter amid soaring prices, consecutive rate hikes, and looming recession fears. However, according to Treasury Secretary Janet Yellen, “This is not an economy that’s in a recession. A recession is broad-based weakness in the economy. We’re not seeing that now.”

Moreover, the benchmark indices seem to be pacing to post their best month since November 2020, as investors anticipate moderating inflation and rate hikes in the coming months. Nonetheless, market volatility is expected to persist for the time being.

Despite the market downturns, mid-cap stocks have recorded stable gains, as is evident from the Vanguard Mid Cap ETF’s (VO) 6.9% returns over the past month.

Therefore, we think investors could consider buying fundamentally sound mid-cap stocks Acuity Brands, Inc. (AYI), Boyd Gaming Corporation (BYD), and Casey’s General Stores, Inc. (CASY) for the rest of 2022.

Acuity Brands, Inc. (AYI)

AYI provides lighting and building management solutions in North America and internationally. The company operates through two segments, Acuity Brands Lighting and Lighting Controls (ABL); and the Intelligent Spaces Group (ISG). Its market capitalization is $6.05 billion.

On June 30, 2022, Neil Ashe, AYI’s Chairman, President, and CEO, said, “We are executing consistently as a result of significant and ongoing improvements in our business, and we continue to generate value for shareholders through share repurchases.”

Moreover, on January 12, 2022, AYI announced its extended collaboration with Microsoft Corp. (MSFT) to introduce new capabilities like smart lighting, lighting controls, and building automation solutions, which are expected to benefit the company.

AYI’s net sales increased 17.9% year-over-year to $1.06 billion for the third quarter ended May 31, 2022. Its adjusted non-GAAP net income came in at $121.30 million, up 20.8% year-over-year, while its adjusted non-GAAP EPS came in at $3.52, up 27.1% year-over-year.

For 2022, analysts expect AYI’s revenue to be $3.99 billion, representing a 15.2% year-over-year rise. In addition, the company’s EPS is expected to increase 24% year-over-year to $12.61 in 2022. It surpassed EPS estimates in each of the trailing four quarters. Over the past month, the stock has gained 15.4% to close the last trading session at $178.07.

AYI’s POWR Ratings reflect this promising outlook. The stock has an overall A rating, which equates to a Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

Also, the stock has an A grade for Quality and a B for Growth, Value, and Sentiment. Within the Home Improvement & Goods industry, it is ranked first among 63 stocks. Click here to see the additional POWR Ratings for Momentum and Stability for AYI.

Boyd Gaming Corporation (BYD)

BYD and its subsidiaries operate as a multi-jurisdictional gaming company. It operates through three segments: Las Vegas Locals; Downtown Las Vegas; and Midwest & South. Currently, the company operates around 28 gaming entertainment properties. Its market capitalization is $6.11 billion.

On June 1, 2022, BYD authorized a $500 million boost to its existing share repurchase program. This investment fortifies the company’s existing robust capital return program.

BYD’s total revenues increased marginally year-over-year to $894.45 million in the second quarter ended June 30, 2022. Its net income came in at $146.76 million, up 29% year-over-year. Moreover, its EPS came in at $1.33, up 33% year-over-year.

Analysts expect BYD’s revenue to increase 2.9% year-over-year to $3.47 billion in 2022. Its EPS is estimated to increase 8% year-over-year to $5.53 in 2022. In addition, it has surpassed the consensus EPS estimates in each of the trailing four quarters. Over the past month, the stock has gained 7.5% to close the last trading session at $55.71.

BYD has an overall B rating, which translates to a Buy in our proprietary rating system. The stock has an A grade for Quality and a B grade for Value.

Within the Entertainment – Casinos/Gambling industry, it is ranked #5 out of 29 stocks. Click here to see the additional POWR Ratings for Growth, Momentum, Stability, and Sentiment for BYD.

Casey’s General Stores, Inc. (CASY)

CASY and its subsidiaries operate convenience stores under the Casey’s and Casey’s General Store names. Its stores offer a selection of food, tobacco and nicotine products, health and beauty aids, automotive products, and other non-food items. It operates around 2,452 convenience stores. Its market capitalization is $7.56 billion.

On June 14, 2022, CASY and MTN DEW® launched MTN DEW OVERDRIVE™, the newest addition to the MTN DEW flavor line-up. The product will be available in more than 2,400 CASY stores and is expected to garner significant returns.

CASY’s total revenue came in at $3.46 billion for the fourth quarter ended April 30, 2022, up 45.4% year-over-year. Its net income came in at $59.78 million, up 43.4% year-over-year, while its EPS came in at $1.60, up 42.9% year-over-year.

CASY’s revenue is expected to increase 31.4% year-over-year to $17.01 billion in 2023. Its EPS is estimated to grow 8.2% per annum for the next five years. Moreover, it surpassed EPS estimates in three of the four trailing quarters. Over the past month, the stock has gained 6.6% to close the last trading session at $202.52.

CASY’s overall A rating translates to a Strong Buy in our POWR Ratings system. It has a B grade for Value, Sentiment, and Quality.

CASY is ranked #7 out of 38 stocks in the A-rated Grocery/Big Box Retailers industry. Click here to check other additional ratings for CASY (Growth, Momentum, and Stability).

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year


AYI shares were trading at $181.47 per share on Friday afternoon, up $3.40 (+1.91%). Year-to-date, AYI has declined -14.10%, versus a -12.96% rise in the benchmark S&P 500 index during the same period.


About the Author: Riddhima Chakraborty


Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
AYIGet RatingGet RatingGet Rating
BYDGet RatingGet RatingGet Rating
CASYGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


What Happens After 6,000 for Stocks?

The S&P 500 (SPY) has the petal to the medal after the election and 2nd Fed rate cut. However, stocks are now pressed up against serious resistance at 6,000 which begs the question of what happens next? Investment pro Steve Reitmeister shares his timely market views including a preview of his top 10 stocks. Get the full story below...

3 Streaming Stocks Benefiting from Cord-Cutting Trends

As streaming continues to dominate the digital entertainment landscape, the global streaming market presents a lucrative investment opportunity. So, it could be ideal to invest in fundamentally solid streaming stocks Netflix (NFLX), Walt Disney (DIS), and Roku (ROKU). Read further...

3 Gold Stocks to Buy as Safe-Haven Demand Grows

Gold is a stable investment now due to its role as a safe-haven asset during economic uncertainty, rising demand, industrial use, and growth, bolstered by central bank purchases and interest rate cuts. Therefore, investors should consider investing in top gold stocks such as Newmont (NEM), Barrick Gold (GOLD), and Agnico Eagle Mines (AEM). Read more...

3 AI Stocks Transforming Industries and Driving Future Growth

With rapid digitalization, rapid adoption, and development, as well as surging demand, the AI market is on the rise. Amid this backdrop, investors could buy fundamentally solid AI stocks NVIDIA Corporation (NVDA), Microsoft (MSFT), and Meta Platforms (META) poised for substantial gains. Continue reading...

Stock Investing AFTER the Election

The S&P 500 (SPY) has been stuck under the highs awaiting the election results. The biggest mystery is how soon results will be finalized. The second biggest concern is what the Fed will do at their 11/7 meeting. Steve Reitmeister shares his views on these things along with fresh market outlook and preview of his top 10 stocks to buy now.

Read More Stories

More Acuity Brands, Inc. (AYI) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All AYI News