Among Steven Cohen’s Mid-Cap Stock Picks with Huge Upside Potential
From Yahoo Finance: 2025-05-09 00:29:00
In the article “Billionaire Steve Cohen’s 10 Mid-Cap Stock Picks with Huge Upside Potential,” Seagate Technology Holdings plc (NASDAQ:STX) is analyzed alongside Cohen’s other mid-cap stock picks. Cohen, renowned in the hedge fund industry, leads Point72 Asset Management with $36.9 billion in assets and a strong performance history, boasting a three-year annualized return of 14.47%.
The US economy’s recent contraction by 0.3% in the first quarter of 2025 raised concerns of a looming recession, with macroeconomic trends impacting investor sentiment. Despite this, Friday’s employment data showing a steady 4.2% unemployment rate provided a boost to investor confidence. The Federal Reserve maintained the Fed rate between 4.25% to 4.5% this week.
Hedge funds like Point72 Asset Management focus on balanced portfolios to navigate market volatility and capitalize on inefficiencies and sector rotations. Mid-cap stocks, offering a mix of growth potential and stability, present a favorable investment option. The mid-cap S&P index has consistently outperformed the large-cap broader index since 1994 with an annualized return of 12%.
In Point72’s Q4 2024 13F filings, Steve Cohen’s 10 Mid-Cap stock picks with significant upside potential were identified. These stocks, with market caps ranging from $10 billion to $40 billion, were selected based on analyst rankings. Hedge funds’ top stock picks have shown potential to outperform the market, with Insider Monkey’s strategy returning 373.4% since May 2014.
Seagate Technology Holdings plc (NASDAQ:STX) has shown resilience despite market uncertainties, surpassing revenue expectations in the third quarter of 2025 with a year-over-year growth of 30.51%. Point72 Asset Management holds a significant stake in the company, boosting its position by 51% during the quarter. While STX ranks 8th on Cohen’s list, AI stocks are seen as holding greater promise for higher returns in a shorter timeframe.
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