The recent equity market rout had caused a drastic plunge in several large-and mid-cap stock prices, wiping out their year-to-date gains. Though a number of stocks have recovered the loss, the equity market volatility has since continued, shaking investors’ confidence on entering the market.

As of Sep 4, 2015, S&P Mid-cap 400 index was down nearly 4.5%, while S&P 500 (SPY) has plunged 6.7% year to date. Both S&P Mid-cap 400 and S&P 500 indexes had gained in the range of 1–4% for the year before witnessing losses due to the market turmoil.  

First and foremost was the slowdown in the Chinese economy. The news that growth in the world’s second largest economy is gradually decelerating and it devalued its currency rattled the markets across the globe. Falling oil prices added fuel to the fire. Moreover, existing concerns related to divergent monetary policies across major economies made matters worse.

However, a number of mid-cap stocks showed resilience during the turmoil, showing lesser losses for the S&P Mid-cap 400 index compared to the S&P 500. So it could be a good idea to pick a few mid-cap stocks that braved the challenges and are expected to perform better than others on the back of positive job data, improving GDP, enhanced consumer spending and a gradual uptick in housing activity in the U.S.

For those who are ready to take the plunge, we have selected a handful of mid-cap growth stocks with a favorable Zacks Rank.

5 Mid-Cap Growth Picks

With the help of Zacks Stock Screener, we have shortlisted the mid-cap stocks that sport a Zacks Rank #1 (Strong Buy) or #2 (Buy), possesses long-term growth rate of 15% or more, returned over 25% year to date and carry a Growth Style Score of 'A.'

Using our new style score system, one can easily select stocks that have a strong upside potential. Our Growth Style Score combines conventional growth metrics with a thorough analysis of the company’s income statement, balance sheet and statements of cash flows to evaluate its financial health and sustainability of its growth trajectory. Our research shows that stocks with Style Scores of ‘A’ or ‘B,’ when combined with Zacks Rank of #1 or #2, offer the best investment opportunities.

Here are 5 of the 8 stocks that passed the screen:

Ellie Mae, Inc. (ELLI - Snapshot Report), headquartered in Pleasanton, CA, operates electronic mortgage origination networks in the United States. The company's network and technology-enabled solutions aid streamline and automate the mortgage origination process.

Zacks Rank: #2
Growth Score: A
Long-term EPS Growth: 21.70%
Year-to-date Return: 75.6%

Market Cap: $2.01 billion

INC Research Holdings, Inc. (INCR - Snapshot Report), based in Raleigh, NC, is a global contract research organization. The company offers the full range of Phase I to Phase IV clinical development services for the biopharmaceutical and medical device industries.

Zacks Rank: #1
Growth Score: A
Long-term EPS Growth: 18.30%
Year-to-date Return: 62.2%
Market Cap: $2.22 billion

Infinera Corporation (INFN - Snapshot Report) is headquartered in Sunnyvale, CA and provides Digital Optical Networking systems to telecommunications carriers, cable operators and other service providers worldwide.

Zacks Rank: #2
Growth Score: A
Long-term EPS Growth: 20.00%
Year-to-date Return: 45.5%
Market Cap: $2.81 billion

Express Inc. (EXPR - Snapshot Report), headquartered in Columbus, OH, is a specialty retailer of women's and men's apparel in the U.S. The company operates retail outlets in high-traffic shopping malls, lifestyle centers and street locations across the country.

Zacks Rank: #1
Growth Score: A
Long-term EPS Growth: 15.00%
Year-to-date Return: 37.6%
Market Cap: $1.71 billion

Allegiant Travel Company (ALGT - Snapshot Report), based in Las Vegas, NV, is a leisure travel company. The company focuses on the provision of travel services and products to residents of under-served cities in the U.S.

Zacks Rank: #2
Growth Score: A
Long-term EPS Growth: 22.90%
Year-to-date Return: 35.1%
Market Cap: $3.45 billion

Final Thoughts

We believe volatility in the equity markets will continue as global concerns are not expected to recede anytime soon. For investors who wish to benefit from such situation, this is the ideal time to enter the market.