5 Mid-Cap Stocks Breaking Out To New Highs

Excessive volatility returned to the market in a big way last week. The S&P 500 dropped more than 4% Friday, following more tariff saber-rattling from the Trump administration. Major indices rebounded about halfway on Monday, but investors are now bracing for more trade war volatility. 

When uncertainty re-enters the picture, it’s a good idea to re-evaluate our investments or look for new opportunities.

Speculation had been running rampant in the weeks before the latest trade war salvo. Today, we’ll look at a few under-the-radar stocks breaking out to new highs.

Spot High-Probability Trades In Seconds, Not Hours

Get breaking market news before mainstream sources, plus AI-powered analysis and professional tools that quickly turn market noise into actionable opportunities. Try it free right here.

Terawulf Inc.

Bitcoin has also experienced bouts of volatility over the last week, but Bitcoin miner Terawulf, Inc.  (NASDAQ:WULF) has seen a steady increase over the previous three months. Unlike many of its peers, Terawulf focuses on utilizing sustainable energy systems to mine its Bitcoin haul. The stock has surged more than 200% over the last three months, rising from $2 to $15. The company now has a market capitalization exceeding $6 billion, against just $140 million in annual sales. Do WULF shares still have more room to run? The chart paints a somewhat conflicting picture.

When evaluating short-term trends, moving averages with shorter durations tend to provide more information than those with longer durations. On the WULF chart, we see the price finding support along the 14-day simple moving average (SMA), signaling strength on the upward trend.

However, the Relative Strength Index (RSI) has soared above the typical Overbought threshold, which hints that this rally is getting long in the tooth. If Bitcoin continues to rise, WULF shares are likely to follow. But if the crypto rally fizzles out, investors need to watch the price action along the 14-day and 21-day SMAs.

USA Rare Earth Inc.

Rare earth minerals have been one of the sore spots in Trump’s trade war with China. Rare earths are essential commodities used in battery components and are crucial in AI infrastructure. The U.S. government has already taken stakes in several public rare earth miners, and investors are speculating that Texas-based USA Rare Earth (NASDAQ:USAR) could be one of the next beneficiaries. The stock now has a market capitalization of $4 billion and has gained more than 200% over the last three months, including a stunning 160% increase in the last 30 days alone.

The daily stock chart indicates that the bullish momentum is backed by considerable strength. In addition to the 14-day and 21-day SMA breakout seen on the WULF chart above, USAR shares also have bullish confirmation on the Moving Average Convergence Divergence (MACD) indicator. Volatility is always a risk with commodity-based stocks, and the RSI is hitting Overbought levels, which should raise concerns for investors. However, the upside here is substantial, and USAR could continue rallying despite the red flags from the RSI.

Plug Power Inc.

Plug Power (NASDAQ:PLUG) is another clean energy play getting substantial attention from investors as its stock rockets toward new multi-year highs. It’s been a rough five years for PLUG, with the stock down more than 70% since its peak as a meme stock in 2021. But hydroelectric power is one of the few areas of clean energy spared from Trump’s One Big Beautiful Bill Act (OBBBA) subsidy slashing, and Plug Power is well-positioned to expand its footprint despite a lack of profits and mounting losses.

The fundamentals may appear shaky, but the chart suggests a potential breakout with significant implications. The stock rebounded above its 14-day and 21-day SMAs in early September, and the 14-day SMA has consistently acted as support whenever momentum begins to fade. With shares returning to near the 14-day SMA and the RSI back under the Overbought Level, this could be a decent buying opportunity for investors looking to open new positions. However, the stock likely remains a short-term trade, not a multiyear investment blue chip (as evidenced by 30% still being sold short despite a raucous rally).

Quantumscape Corp.

Quantumscape (NYSE:QS) is another battery manufacturer designing solid-state solutions for electric vehicles. Like PLUG, Quantumscape has yet to turn a profit; its fundamentals remain murky. The stock has already received six different price target reductions this year. But despite these headwinds, the company’s market cap has surged past $9.5 billion, and the stock is up 220% year-to-date (YTD).

QS shares experienced a brief drawdown from July to September, as the price fell below the 14-day and 21-day SMAs. However, the tide began to turn in early September. A new uptrend started about a month ago when the price once again breached the 14-day and 21-day SMAs. The MACD also shows strong bullish momentum in the underlying trend, likely indicating more short-term upside ahead. However, it’s essential to emphasize the “short-term” aspect here; the company reports earnings on October 22, and a negative report from a speculative play like QS could quickly disrupt the technical trend.

Weibo Corp.

Weibo (NASDAQ:WB) is one of the largest social media platforms in China, generating annual sales of approximately $1.75 billion against a market capitalization of just $2.75 billion. The company, which has posted top and bottom-line earnings beats in each of the last four quarters, trades at less than eight times earnings, and pays a hefty 7% dividend. Naturally, WB shares have the worst-looking chart of any stock on our list, with bearish signals indicating a potential stalling of the uptrend.

Last week, WB shares topped the $12 mark for the first time since September 2023, having gained 40% since Trump canceled the Liberation Day tariffs in April. However, it now appears that the rally is breaking down as investors take profits and head for less contentious grounds. The stock has declined nearly 10% over the last week, breaking through support by falling below both the 14-day and 21-day SMAs. The MACD has been hinting at weakening momentum since mid-September, and now the oscillator is rolling over as capital heads to the exit. Weibo’s long-term fundamentals still appear sound, but it’s likely to be choppy sailing for WB’s stock until the trade war settles down.

Editorial content from our expert contributors is intended to be information for the general public and not individualized investment advice. Editors/contributors are presenting their individual opinions and strategies, which are neither expressly nor impliedly approved or endorsed by Benzinga.

Photo: Shutterstock