1.iShares S&P U.S. Mid-Cap Index ETF (CAD-Hedged)
XMH.TO (TSX)
The iShares S&P U.S. Mid-Cap Index ETF (CAD-Hedged) provides Canadian investors with a robust avenue for diversifying their portfolios through U.S. mid-cap stocks, all while mitigating currency risk. With a solid 1-year return of 5.86% and a noteworthy 5-year return of 39.28%, this ETF stands out as an attractive choice for those looking to tap into mid-cap growth opportunities. Additionally, it offers a modest dividend yield of 1.09%, making it a well-rounded option for investors seeking both growth and income.
Pros:
- Diversified exposure to U.S. mid-cap stocks
- Currency hedging suitable for Canadian investors
Cons:
- Market volatility risk
- Performance dependent on U.S. mid-cap market
2.Badger Infrastructure Solutions
BDGI.TO (TSX)
Badger Infrastructure Solutions, a mid-cap stock with a market cap of $2.7 billion, stands out as a promising investment due to its alignment with the growing infrastructure spending trend. Currently, it boasts a moderate buy consensus from analysts, supported by a remarkable 94.23% return over the past year and a 103.01% return over five years, reflecting strong performance. With a dividend yield of 1.03%, this stock is an attractive option for investors seeking reliable income and growth potential in the industrial sector.
Pros:
- Benefits from infrastructure spending growth
- Strong recent performance with shares up 10% in early 2026
Cons:
- Market cap volatility due to economic conditions
- Dependence on infrastructure spending trends
3.Cargojet
CJT.TO (TSX)
Cargojet, a Canadian cargo airline, has seen its stock rebound by 37% since its November 2025 lows, yet it remains oversold at a trailing P/E of 11.8. With a current dividend yield of 1.67%, this could be an appealing opportunity for investors looking for value in the face of recent economic challenges. Analysts project that the company's revenue may reach CA$1.1 billion by 2028, indicating potential for future growth despite a challenging past year, which saw a 23.7% drop in stock value.
Pros:
- Potential value despite recent economic headwinds
- Recovery of 37% since November 2025 lows
Cons:
- Decline in earnings due to macroeconomic challenges
- Recent stock price drop to lowest level in three years
Final Words
As you consider investing in mid-cap stocks this February 2026, take time to compare the potential opportunities, such as Cargojet, and assess their fit within your portfolio. Conduct your own research to make informed decisions that align with your investment goals.
Frequently Asked Questions
Cargojet has shown a recovery of 37% since November 2025 lows and is considered oversold at a trailing P/E of 11.8 times. This potential value amidst economic headwinds makes it an attractive option for investors.
Cargojet offers a dividend yield of approximately 1.67%, with a quarterly distribution of $0.3500. The previous dividend date was January 5, 2026.
Cargojet's stock has recorded a 3-month return of 12.35% and a year-to-date return of 9.53%. However, it has seen a decline of 23.70% over the past year.
Mid-cap stocks can be more volatile than large-cap stocks, which means they may experience larger price swings. Additionally, economic downturns can disproportionately impact mid-cap companies, affecting their performance.
When evaluating mid-cap stocks, consider factors like market capitalization, growth potential, financial performance, and industry trends. It's also important to analyze the company's P/E ratio and dividend yield to gauge its valuation and income potential.
Cargojet has a market capitalization of approximately $1.42 billion. This positions it within the mid-cap sector, which generally includes companies valued between $2 billion and $10 billion.
