Mid-cap stocks are shares of companies with a market capitalization of between $2 billion and $10 billion. The best-performing mid-cap stocks have reported strong returns for various reasons. Some companies have benefited from U.S. and international sanctions targeting Russian oil and gas producers.
Today, we will discuss 3 best-performing mid-cap stocks: Antero Resources, Alcoa, and Devon Energy.
These best-performing mid-cap stocks have provided one-year total returns of more than 165% as of April 4, 2022.
Antero Resources Corporation (AR)
Antero Resources Corporation (AR) produces natural oil and gas. The stock has returned 186.1% in the last year. It is one of the momentum stocks that gets a Score of A now. Shares of AR have gone up 40.16% in the last quarter and have gained 174.85% in the last year. Like many other gas and oil companies, Antero may have also been benefiting from U.S. sanctions against Russia and may continue to perform well in the following quarters.
Unfortunately, according to Musaffa Halal Stock Screener, AR is categorized as not halal (not Shariah compliant stock). You can check the detailed halal screening report here.
Alcoa Corporation (AA)
Alcoa Corporation is the largest producer of aluminum, bauxite, and alumina products. It has returned 181.8% in the past year. Shares of Alcoa increased by 13.5% in March and dropped by $43.06 as of July 15, 2022. Alcoa’s Q1 2022 was very promising for many investors. Still, some analysts believe its earnings for Q2 2022 will also be positive because the price of aluminum will continue to increase due to Russia and Ukraine wars.
AA falls under the category of Halal stocks according to the Musaffa screener. Muslim investors can invest in this stock. Click here to see the halal screening report of AA stock.
Devon Energy Corporation (DVN)
Devon Energy Corporation (DVN) engages in oil and gas exploration, development, and production. This energy stock has returned 168.2% in the past year. The stock’s earnings increased 35.3% compared to last year’s results, and it reported first-quarter 2022 earnings of $1.88 per share. Now, Devon has a strong growth and momentum score of A while it gets a grade of C on the value side.
Although the business activities of DVN pass the halal stock screening analysis, the company’s interest-bearing debt doesn’t. Click here to see the full report on Musaffa Halal Stock Screener.
Are These Mid-Cap Stocks Halal?
Antero Resources Corporation (AR)
Business Activity Screening
Firstly, AR’s 100% revenue comes from Shariah-compliant segments. So, it passes the first screening criteria since not halal and questionable business activities equal 0%.
Interest-bearing Securities Screening
Deposits and investments that generate interest account for 0% of its market cap. Consequently, AR stock successfully passes the second criteria.
| Interest-bearing securities and assets | 0 |
| Market Cap | $3.50B |
Interest-bearing debt Screening
Lastly, debt that generates interest constitutes 60.77% of its market cap, far above the allowed 30% market cap. So it failed from the third criteria and was marked as “not halal” at Musaffa.
| Total Debt | $2.13B |
| Market Cap | $3.50B |
Alcoa Corporation (AA)
Business Activity Screening
Firstly, AA’s 99.88% of revenue comes from Shariah-compliant segments. The marginal 0.12% comes from not halal business activities. So, it passes the first screening criteria since not halal and questionable business activities do not exceed the 5% threshold.
Interest-bearing Securities Screening
Deposits and investments that generate interest account for 27.14% of its market cap. Consequently, AA stock successfully passes the second criteria as its interest-bearing securities do not exceed 30% of its market cap.
| Interest-bearing securities and assets | $1.64B |
| Market Cap | $6.04B |
Interest-bearing debt Screening
Lastly, debt that generates interest constitutes 28.60% of its market cap, slightly below the allowed 30% of the market cap. So, it passes from the third criteria and was marked as “halal” at Musaffa. However, the company is rated as two stars on Musaffa platform because of the amount of the interst bearing debt is almost cross the threshold.
| Total Debt | $1.73B |
| Market Cap | $6.04B |
Devon Energy Corporation (DVN)
Business Activity Screening
Firstly, DVN’s 99.97% revenue comes from Shariah-compliant segments. The marginal 0.03% comes from not halal business activities. So, it passes the first screening criteria since not halal and questionable business activities do not exceed the 5% threshold.
Interest-bearing Securities Screening
Deposits and investments that generate interest account for 20.52% of its market cap. Consequently, A.A. stock successfully passes the second criteria as its interest-bearing securities do not exceed 30% of its market cap.
| Interest-bearing securities and assets | $3.46B |
| Market Cap | $16.85B |
Interest bearing debt Screening
Lastly, debt that generates interest constitutes 39.87% of its market cap, slightly above the allowed 30% of the market cap. It is above the allowed threshold. So, it failed from the third criteria and was marked as “not halal” at Musaffa.
| Total Debt | $6.72B |
| Market Cap | $16.85B |
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