However, there are a number of mid-cap stocks which have lagged the rally, which means they can be picked up for more attractive valuations that those that have already experienced strong share price rises.
FE Trustnet looks at five mid-cap stocks which a majority of the professional analysts say are attractive at these prices according to data compiled by the Share Centre.
QinetiQ
Aerospace and defence company QinetiQ is a world leader in defence technology. It manufactures and supplies sensors for weapons, advanced robotics systems and advanced security for computer systems. It was spun out of the MoD in 2001.
The stock has picked up 13.96 per cent over the last 12 months, less than the FTSE 250 index. It’s had a tough time over the shorter term, losing 8.1 per cent on disappointing sales figures from its US arm.
However, the firm has said it plans to sell its US services division for up to $215m and focus on its UK operations, potentially good news for shareholders.
Performance of stock vs index over 1yr
Source: FE Analytics
Analysts rate the stock as a strong buy and seven funds in the IMA universe hold the defence company it their top-10, including famously contrarian investor Alastair Mundy’s four FE Crown rated Investec Special Situations fund and FE Alpha Manager duo Alex Savvides’ and Mark Costar’s JOHCM UK Dynamic fund.
Costar also holds the stock in the top-10 of his four FE Crown rated JOHCM UK Growth portfolio.
QinetiQ has a dividend yield of 1.9 per cent and is trading on a price to earnings (P/E) ratio of 14.3, cheaper than it’s been for the last five years.
Savills
News headlines have been awash with speculation as to whether the property market is topping out or if prices can continue to soar, especially in London and the southeast.
UK estate agent Savills has lagged the FTSE 250 index over the last year, picking up just 5.71 per cent, but it could stand to benefit if property prices continue to rise alongside the overall recovery in the UK economy.
Performance of stock vs index over 1yr
Source: FE Analytics
Analysts rate the stock as a strong buy and it is trading on a P/E ratio of 15, slightly cheaper than it’s been over the last two years.
The stock is also expected to dramatically boost its yield this year, to 3.7 per cent, up from 1.6 per cent at the end of 2013. The yield is expected to grow to as much as 5 per cent by 2016.
However, no managers in the IMA universe hold the stock in their top 10.
Dairy Crest Group
UK-based dairy food company Dairy Crest Group is one that has been lacklustre as many mid-cap stocks have roared ahead, picking up just 3.90 per cent over the last year.
Performance of stock vs index over 1yr
Source: FE Analytics
However, the firm has recently had its buy rating reiterated by analysts at Jeffries Group, though others are more neutral in their view of the stock.
The stock is held in the top-10 of two funds in the IMA universe – FE Alpha Manager Giles Hargreave’s Marlborough Multi-Cap Income fund and the five FE Crown rated R&M UK Equity Smaller Companies fund, run by FE Alpha Manager Daniel Hanbury.
It is trading on a P/E ratio of 12.1, more expensive than it was last year, but still cheaper than it has been over the last five years. It has an attractive dividend yield of 4.7 per cent, expected to rise to 4.9 per cent in 2015 and 5.1 per cent the following year.
888 Holdings
Online gaming firm 888 Holdings – famous for brands like Casino-on-Net and Pacific Poker, is a mid-cap which could be ripe for the picking, according to analysts, who rate the stock as a strong buy.
The stock delivered stellar returns over the last three years, picking up 302.79 per cent, but has disappointed over the last 12 months, losing 11.85 per cent, according to FE Analytics.
Performance of stock vs index over 1yr
Source: FE Analytics
However, the firm reported a rise in revenue for the first quarter of 2014, a record for the firm, though it has continued to face headwinds in share price terms.
Only two funds in the IMA universe holds the stock in its top-10 - the CF Miton UK Smaller Companies fund, managed by Gervais Williams and Martin Turner, and the City Financial UK Opportunities portfolio, headed up by FE Alpha Manager Leigh Himsworth.
Himsworth holds a number of companies in the online gaming sector, saying that it is due a boost from liberalisation in the US.
The stock is trading on a P/E ratio of 17.1, cheaper than it’s been in three years, and had a dividend yield of 3.1 per cent.
Rotork
British-based manufacturing company Rotork has been knocked about over the last several years, shedding money over one and three years, though it has delivered strong returns over the longer term.
Performance of stock vs index over 1yr
Source: FE Analytics
However, the stock has only this week had its buy rating reinstated by a number of analysts, including RBC Group and Numis Securities, who think demand for products will increase as UK manufacturing figures improve.
The only fund that holds Rotork in its top-10 is the five FE Crown rated Close OLIM UK Equity fund, run by Angela Lascelles, Simon Jaffe and Andrew Impey.
The stock is trading on a P/E ratio of 19.6, slightly more expensive than it’s been over the last several years. It has a dividend yield of 2 per cent.
