Many investors pay attention to mid-cap stocks because they have established business models and expansive market opportunities. However, their paths to becoming $100 billion corporations are ripe with competition, ranging from giants with vast resources to agile upstarts eager to disrupt the status quo.
Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. That said, here is one mid-cap stock with a long growth runway and two that could be down big.
Two mid-cap stocks to sell:
Unity (U)
Market cap: $21.48 billion
Powering over half of the world's mobile games and expanding into industries from automotive to architecture, Unity (NYSE: U) provides software tools and services that allow developers to create, run, and monetize interactive 2D and 3D content across multiple platforms.
Why Are We Cautious About U?
- Muted 5.3% annual revenue growth over the last two years shows its demand lagged behind its software peers
- Historical operating margin losses point to an inefficient cost structure
Unity is trading at $52.21 per share, or 8x forward price-to-sales. Read our free research report to see why you should think twice about including U in your portfolio.
Snap-on (SNA)
Market cap: $18.9 billion
Founded in 1920, Snap-on (NYSE: SNA) is a global provider of tools, equipment, and diagnostics for various industries such as vehicle repair, aerospace, and the military.
Why Is SNA Not Exciting?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Flat earnings per share over the last two years underperformed the sector average
- Waning returns on capital imply its previous profit engines are losing steam
At $366.17 per share, Snap-on trades at 18.2x forward P/E. To fully understand why you should be careful with SNA, check out our full research report (it’s free).
One mid-cap stock to buy:
Corpay (CPAY)
Market cap: $29.35 billion
Formerly known as FLEETCOR until its 2024 rebrand, Corpay (NYSE: CPAY) provides specialized payment solutions for businesses to manage vehicle expenses, corporate payments, and lodging costs with enhanced control and reporting capabilities.
Why Is CPAY a Good Business?
- Impressive 16.1% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Share repurchases have increased shareholder returns as its annual earnings per share growth of 20.8% exceeded its revenue gains over the last two years
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
Corpay’s stock price of $447 implies a valuation ratio of 13.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-quality stocks for all market conditions
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
