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 Inari Medical, Inc. (NASDAQ:NARI) 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.

A close-up view of a technician wearing protective gloves while installing a mechanical thrombectomy system.

Inari Medical, Inc. (NASDAQ:NARI)

• YTD Performance: 53.57%

Inari Medical Inc (NASDAQ:NARI) makes medical devices to treat blot clots in veins and their main products are designed to remove clots from deep veins and pulmonary arteries without using clot-dissolving drugs.

Much like the company I've discussed above, Inari Medical has also risen sharply due to an acquisition deal being announced. Stryker announced it's buying Inari Medical for $4.9 billion at $80 per share in cash.

In their last reported quarter (Q3 2024), they pulled in revenue of $153.4 million, up 21.4% from the same quarter the previous year. That's impressive growth, no doubt. However, they're still operating at a loss, with a GAAP operating loss of $13.6 million in that quarter. It's worth noting that this is a bigger loss compared to the $2.1 million operating income they had in the same quarter of 2023.

Again, we think the acquisition deal should be focused on more than the financials here.

Overall NARI ranks 2nd on our list of the hottest mid-cap stocks so far in 2025. While we acknowledge the potential of NARI 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 NARI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

READ NEXT: 10 Hottest Mega-Cap Stocks So Far in 2025 and 10 Hottest Large-Cap Stocks So Far in 2025

 

Disclosure: None. This article is originally published at Insider Monkey.