Best mid-cap financial stocks to invest in 2025

The financial sector offers numerous opportunities for investors seeking stable growth and resilience, and mid-cap companies often represent the perfect balance between reliability and upward potential. These firms play crucial roles in specialized financial services, helping to drive innovation and address unique market needs.

Mr. Cooper Group is a prominent player in the mortgage servicing and lending industry, excelling in customer-focused solutions for homeowners. Its expertise in managing mortgage portfolios positions it strongly amid fluctuating interest rates. StoneX Group, a global financial services firm, specializes in providing trading, hedging, and risk management solutions to businesses and institutions, offering access to diverse markets. CBIZ delivers essential financial, insurance, and advisory services to small and mid-sized businesses, showcasing consistent growth through its focus on client success and market expansion.

These mid-cap financial companies combine niche expertise with operational excellence, making them standout picks for investors looking to tap into the evolving financial landscape in 2025. Explore our in-depth analysis to understand why they should be on your radar.

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Before we dive into each company, let`s take a look at how your investment would have performed if you had invested in top 10 stocks mentioned in this article 5 years ago.

Now, let`s take a closer look at each of the companies:

  • The Bancorp (NYSE:TBBK)

    The Bancorp Inc is a financial holding company headquartered in Wilmington, Delaware. It operates through its subsidiary, The Bancorp Bank, providing a range of banking and financial services, including prepaid cards, payment processing, and commercial lending. The company focuses on serving niche markets and fintech partners, offering tailored solutions for businesses and consumers.

    The Bancorp financial statements

    Analysts recommendation: 2

    Financial Health

    • Return on assets (ROA): 2.64%
    • Return on equity (ROE): 27.41%
    • Return on investment (ROI): 22.9%

    Profitability

    • Gross margin: 0%
    • Operating margin: 59.07%
    • Net profit margin: 43.5%

    Growth

    • EPS (past 5 years): 36.68%
    • EPS (current): 4.65
    • EPS estimate (next quarter): 1.27
    • EPS growth (this year): 21%
    • EPS growth (next year): 23.89%
    • EPS growth (next 5 years): N/A
    • EPS growth (quarter-over-quarter): 12.65%
    • Sales growth (past 5 years): 19.65%
    • Sales growth (quarter-over-quarter): 11%

    💡 Why invest in The Bancorp?

    Like a specialized financial architect building bridges between traditional banking and digital innovation, The Bancorp creates unique value propositions:

    • Fintech Partnerships: The Bancorp specializes in providing banking-as-a-service solutions to fintech companies, creating recurring revenue streams from the rapidly growing digital finance ecosystem and innovative payment platforms.
    • Payment Processing: The company's expertise in prepaid cards and payment processing positions it to benefit from the accelerating shift toward digital payments, cashless transactions, and mobile banking solutions.
    • Niche Leadership: The Bancorp's focus on underserved markets and specialized financial services creates competitive advantages, reduces direct competition with large banks, and enables premium pricing for tailored solutions.
    • Strong Profitability: The company demonstrates impressive financial metrics with high ROE and net profit margins, indicating efficient capital allocation, operational effectiveness, and successful niche market positioning strategies.

    🐌 Key considerations before investing in The Bancorp

    Even the most innovative financial institutions face regulatory and competitive headwinds that can impact performance:

    • Regulatory Scrutiny: As a specialized bank serving fintech partners, The Bancorp faces heightened regulatory oversight and compliance requirements that can increase operational costs, limit growth opportunities, and create uncertainty.
    • Fintech Dependency: The company's reliance on fintech partnerships creates concentration risk, as changes in partner relationships, fintech industry dynamics, or regulatory restrictions could significantly impact revenue streams.
    • Interest Rate Risk: The Bancorp's profitability depends on interest rate spreads, making it vulnerable to Federal Reserve policy changes, interest rate cycle fluctuations, and margin compression during rate volatility periods.
    • Competitive Threats: Large banks increasingly compete in fintech partnerships and digital banking services, potentially pressuring The Bancorp's market position, pricing power, and customer acquisition capabilities.

    Final thoughts on The Bancorp

    The Bancorp's strategic positioning at the intersection of traditional banking and fintech innovation creates compelling growth opportunities in the evolving financial services landscape. The company's specialized expertise and strong financial performance demonstrate its ability to capitalize on digital transformation trends. However, investors must consider regulatory risks and competitive pressures that characterize the banking sector. Like a skilled translator bridging different languages, The Bancorp's ability to connect traditional banking infrastructure with innovative fintech solutions makes it increasingly valuable as financial services continue their digital evolution.

  • CBIZ (NYSE:CBZ)

    CBIZ, Inc. is a leading provider of professional services, headquartered in Cleveland, Ohio. Established in 1996, the company has grown to become a trusted partner for businesses and individuals across the United States. With a national presence spanning over 100 offices, CBIZ offers tailored solutions to meet the diverse needs of its clients.

    The company specializes in accounting, tax, advisory, insurance, and employee benefits consulting services. By combining industry expertise with personalized support, CBIZ helps clients navigate complex financial and operational challenges. Focused on delivering measurable results, the company is committed to fostering long-term success for organizations and individuals alike.

    CBIZ financial statements

    Analysts recommendation: 1

    Financial Health

    • Return on assets (ROA): 5.36%
    • Return on equity (ROE): 7.84%
    • Return on investment (ROI): 2.33%

    Profitability

    • Gross margin: 14.55%
    • Operating margin: 9.7%
    • Net profit margin: 4.51%

    Growth

    • EPS (past 5 years): -9.24%
    • EPS (current): 1.44
    • EPS estimate (next quarter): 0.84
    • EPS growth (this year): 69.2%
    • EPS growth (next year): 14.1%
    • EPS growth (next 5 years): N/A
    • EPS growth (quarter-over-quarter): 25.03%
    • Sales growth (past 5 years): 13.84%
    • Sales growth (quarter-over-quarter): 62.7%

    💡 Why invest in CBIZ?

    Like a trusted business advisor with expertise across multiple disciplines, CBIZ provides comprehensive professional services that businesses increasingly depend on:

    • Diversified Service Portfolio: CBIZ offers integrated accounting, tax, advisory, insurance, and employee benefits services, creating multiple revenue streams and reducing dependency on any single service line.
    • National Market Presence: With over 100 offices across the United States, CBIZ maintains strong regional relationships while providing national-scale capabilities to serve diverse client needs effectively.
    • Recurring Revenue Model: The company's accounting, tax, and benefits consulting services generate predictable recurring revenue streams that provide financial stability and growth visibility.
    • Strategic Acquisitions: CBIZ's disciplined acquisition strategy expands geographic reach and service capabilities, enabling organic growth acceleration and market share expansion in targeted regions.

    🐌 Key considerations before investing in CBIZ

    Even the most comprehensive professional service providers face challenges that can impact their ability to deliver consistent growth:

    • Economic Sensitivity: CBIZ's business depends on client spending for professional services, making it vulnerable to economic downturns when businesses reduce discretionary consulting and advisory expenditures.
    • Competitive Pressure: The company faces competition from large accounting firms, specialized consultants, and technology-enabled service providers that can pressure margins and client retention rates.
    • Regulatory Complexity: Changes in tax codes, accounting standards, and insurance regulations require continuous investment in training and compliance, increasing operational costs and complexity.
    • Talent Acquisition: CBIZ's success depends on attracting and retaining skilled professionals in competitive labor markets, creating ongoing challenges in maintaining service quality and capacity.

    Final thoughts on CBIZ

    CBIZ's diversified professional services platform and national presence create compelling opportunities in the growing market for business advisory services. The company's recurring revenue model and strategic acquisition approach provide competitive advantages in serving middle-market clients. However, investors must consider economic sensitivity and competitive pressures that characterize the professional services sector. Like a skilled conductor orchestrating multiple instruments, CBIZ's ability to integrate diverse professional services creates value for clients while building sustainable competitive advantages in an increasingly complex business environment.

  • Sprott (TO:SII)

    Sprott Inc. is a leading alternative asset manager focused on precious metals and real assets, providing specialized investment solutions to institutional and retail investors worldwide. Founded in 1981 by Eric Sprott and headquartered in Toronto, Canada, the company has established itself as a premier provider of precious metals investment products and mining-focused investment strategies. Sprott has built a reputation for expertise in gold, silver, platinum, and other precious metals markets, offering both physical bullion products and equity investments in mining companies.

    The company operates through multiple business segments including asset management, lending, and corporate activities, with a particular focus on precious metals markets and natural resource investments. Sprott manages a diverse range of investment products including exchange-traded funds, closed-end funds, managed accounts, and private placements, serving clients seeking exposure to alternative assets and inflation hedging strategies. With growing interest in precious metals as portfolio diversifiers and store of value assets, Sprott continues to expand its product offerings and global market presence.

    Sprott financial statements

    Analysts recommendation: 2.1

    Financial Health

    • Return on assets (ROA): 10.9%
    • Return on equity (ROE): 14.34%
    • Return on investment (ROI): N/A

    Profitability

    • Gross margin: 47.83%
    • Operating margin: 34.38%
    • Net profit margin: 25.21%

    Growth

    • EPS (past 5 years): N/A
    • EPS (current): 2.69
    • EPS estimate (next quarter): N/A
    • EPS growth (this year): 2%
    • EPS growth (next year): N/A
    • EPS growth (next 5 years): N/A
    • EPS growth (quarter-over-quarter): N/A
    • Sales growth (past 5 years): N/A
    • Sales growth (quarter-over-quarter): 35.8%

    💡 Why invest in Sprott?

    Sprott shines like a carefully curated precious metals vault, offering investors diversified exposure to alternative asset management excellence:

    • Metals Expertise: Sprott's specialized focus on precious metals and natural resources provides deep market knowledge and investment expertise that creates competitive advantages in alternative asset management.
    • Product Portfolio: The company offers a comprehensive range of investment products including ETFs, closed-end funds, and managed accounts, providing multiple revenue streams and reducing dependence on single categories.
    • Alternative Demand: Sprott benefits from increasing investor interest in precious metals and alternative assets as portfolio diversifiers and inflation hedges, particularly during economic uncertainty periods.
    • Strong Financial Performance: The company demonstrates solid profitability with healthy margins and consistent cash generation, supported by asset-based fee structures and growing assets under management across its product offerings.

    🐌 Key considerations before investing in Sprott

    Even the most polished precious metals investments can experience tarnishing during challenging market conditions and competitive pressures:

    • Price Sensitivity: Sprott's performance is closely tied to precious metals prices and mining sector performance, creating earnings volatility during periods of declining commodity prices or reduced alternative asset interest.
    • Competitive Pressure: The company faces competition from larger asset managers and specialized commodity funds, which could pressure management fees and require increased marketing spending to maintain market share.
    • Regulatory Risks: Operating in multiple jurisdictions and managing various investment products exposes Sprott to evolving regulatory requirements and compliance costs that could impact operational efficiency.
    • Market Sentiment Dependency: Sprott's business success depends on investor sentiment toward precious metals and alternative assets, which can be influenced by macroeconomic factors beyond the company's control.

    Final thoughts on Sprott

    Sprott offers investors exposure to the growing alternative asset management sector with specialized expertise in precious metals and natural resources investment strategies. The company's diversified product portfolio and strong market position provide competitive advantages, though investors should consider risks from commodity price volatility and market sentiment fluctuations. Like a well-balanced precious metals portfolio, Sprott's focused approach to alternative asset management makes it an attractive consideration for investors seeking exposure to specialized investment management expertise.

If you are interested in other stock categories, check out my other lists of the best mid-cap semiconductor, industrial, energy, basic materials, utility, retail, healthcare, tech, financial stocks.