We recently compiled a list of the 10 Hottest Mid-Cap Stocks So Far in 2025. In this article, we are going to take a look at where Semrush Holdings, Inc. (NYSE:SEMR) stands against the other mid-cap stocks.
If you’ve been fixated on the usual suspects in the S&P 500, you might be missing out on some solid action. Many mid-cap stocks have been delivering stellar gains in the first few weeks of this month, and there’s a good chance the momentum will stick around.
We believe they’ll prove to be more nimble than the large-cap stocks. It’s worth looking at them because they are comparatively trading at more attractive valuations and they also strike the sweet spot between the stability of large caps and the growth potential of small caps.
The S&P MidCap 400 index has outpaced the S&P 500 index year-to-date. It’s not just a flash in the pan, either. Historically, mid-caps have outperformed both their larger and smaller counterparts in 55% of rolling five-year periods since 1983. As such, it’s worth looking deeper into each top mid-cap performer.
Bespoke software code running on a computer terminal, displaying the complex nature of the software-as-a-service platform.
Semrush (NYSE:SEMR) is one of the most well-known Search Engine Optimization (SEO) tools out there. SEO is very critical for any website on the web, as most websites receive their traffic from Google or some other search site. Semrush’s tools can help websites understand whether or not their website is optimized for such search engines.
Semrush has recently raised its revenue outlook to $375 million to $376 million and on top of that, it is weaving more AI features onto its platform. Plus, it has seen consistent increases in both paying users and overall sales. Semrush hit 82,000 customers at the time of their IPO in 2021 and that momentum has continued to carry forward.
Overall SEMR ranks 3rd on our list of the hottest mid-cap stocks so far in 2025. While we acknowledge the potential of SEMR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SEMR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
