While 2014 is off to a rocky start, stocks of mid-cap companies in the Ninth District had a strong year in 2013 with a 27 percent gain, similar to the 28 percent increase in the S&P MidCap 400 Index (see chart, at bottom).
In 2013, growth was broad-based, with all sectors reporting net increases in market capitalizations. But certain sectors stood out. Almost a quarter of the total market value added was accounted for by growth in the technology sector, led by Stratasys, a manufacturer of 3D printers based in Eden Prairie, Minn., which posted strong gains in market capitalization and prices during this period.
Industrial goods, utilities and services sectors also had robust increases in market value. Buffalo Wild Wings doubled its market valuation from $1.4 billion to $2.8 billion; MDU Resources Group, a diversified utilities and energy-related services provider based in North Dakota, saw its market cap increase by 41 percent ($1.7 billion) in 2013, while the market value of Polaris Industries, a Minnesota-based manufacturer of snowmobiles and off-road vehicles, grew 70 percent ($4.1 billion).
Strong overall growth notwithstanding, a few companies in the district decreased in value during 2013, including the Minnesota-based logistics company C.H. Robinson Worldwide, which lost 14 percent ($1.5 billion) of its market capitalization during the year.
While 2013 was strong, the first month of 2014 saw Ninth District stock values decline by 6 percent, while the S&P MidCap 400 Index decreased by 2 percent. Grocery chain Supervalu and Select Comfort each lost about a fifth of market value during January, while Polaris’ market cap gave back a good portion of its 2013 gains when it dropped 16 percent ($1.7 billion) to start the new year.
The district mid-cap index for 2013 is constructed on monthly data running from January 2 to December 31. See technical notes for methodology and other details.