10/10 midcaps in 2026: maximum quality under the radar
2026-06-23 · By Lubin Danilo, founder of Lubin Investment
Several companies between $700M and $12B market cap score 10/10 in our screener. Among the most interesting: NSSC (IoT security), SIGI (commercial insurance), AIZ (smartphones), GRC (industrial pumps), KGC (gold), DPM (gold). Some are in buy territory — notably NSSC at 3.5% below target.
Why midcaps can beat mega-caps
Large caps (Apple, Microsoft, Nvidia) attract most analyst attention and fund flow. Companies between $500M and $15B in market cap are often under-followed — sometimes covered by 5-10 analysts vs 40-50 for mega-caps. This information asymmetry creates opportunities: companies with maximum fundamental quality trading at lower multiples than their quality would justify.
10/10 midcaps in our screener as of June 23, 2026
| Company | Ticker | Sector | Score | P/FCF | Market cap | Buy zone? |
|---|---|---|---|---|---|---|
| Napco Security | NSSC | IoT Security | 10/10 | 24.3× | ~$700M | ✅ Yes (-3.5%) |
| Selective Insurance | SIGI | Commercial Insurance | 10/10 | 5.0× | ~$5B | No (+7%) |
| Assurant | AIZ | Smartphone Insurance | 10/10 | 9.6× | ~$12B | No (+16%) |
| Gorman-Rupp | GRC | Industrial Pumps | 10/10 | 24.0× | ~$500M | No |
| Kinross Gold | KGC | Gold Mining | 10/10 | 12.6× | ~$12B | ✅ Yes (-7.8%) |
| DPM Precious Metals | DPM | Gold Mining | 10/10 | 13.1× | ~$3.5B | ✅ Yes (-4%) |
NSSC: 10/10 and in buy territory
Napco Security Technologies (Nasdaq: NSSC) is the most interesting case on our list. Market cap ~$700M — one of the smallest among our 10/10s. NSSC makes alarms, access control systems, and connected security solutions (IoT) for residential and commercial buildings. Its recurring revenue model (monitoring software licenses) makes it atypical among security hardware companies. On June 23, 2026, NSSC trades at $37.50 vs a target of $39.51 — 3.5% below our buy target.
Selective Insurance (SIGI): 10/10 at 5× FCF
Selective Insurance Group (Nasdaq: SIGI) is a 100-year-old specialized commercial insurer in the eastern US. Its 10/10 score at P/FCF 5.03× makes it one of the best-rated and cheapest assets in our screener. The commercial P&C insurance sector is structurally attractive: premiums are rising (hardening market), claims are predictable on standard commercial lines, and SIGI's underwriting discipline is recognized.
FAQ
Are midcaps riskier than mega-caps?
They are more volatile (lower liquidity, less analyst coverage, more sensitivity to microeconomic news). But fundamental risk is no higher for 10/10 companies — these are solid balance sheets. Volatility is an opportunity for long-term investors.
Is NSSC really in buy territory?
On June 23, 2026, NSSC trades at $37.50 vs a buy target of $39.51 — 3.5% below. That's a technical buy zone. The $700M market cap means the stock can be volatile on low daily volume. Only invest with limit orders and a reasonable position size.
How to monitor 10/10 midcaps?
Our screener updates scores in real time. Midcaps in buy territory (like NSSC today) are tactical opportunities. Set a price alert on your broker at our buy target — when the price falls below the target, that's the signal.
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About the author
Written by Lubin Danilo, founder of Lubin Investment. A self-taught individual investor, I have analyzed stocks through their fundamentals for several years and invest my own money with this method. I codified it into a tool that judges a company's quality and its price separately, using criteria drawn from the financial literature (Warren Buffett, Michael Mauboussin, Aswath Damodaran).