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.
This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. Keeping that in mind, here are two mid-cap stocks with huge upside potential and one that could be down big.
One Mid-Cap Stock to Sell:
IDEX (IEX)
Market Cap: $17.18 billion
Founded in 1988, IDEX (NYSE: IEX) is a global manufacturer specializing in highly engineered products such as pumps, flow meters, and fluidics systems for various industries.
Why Do We Think Twice About IEX?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 3.5% annually
- Waning returns on capital imply its previous profit engines are losing steam
At $228.33 per share, IDEX trades at 25.1x forward P/E. Check out our free in-depth research report to learn more about why IEX doesn’t pass our bar.
Two Mid-Cap Stocks to Watch:
IonQ (IONQ)
Market Cap: $17.39 billion
Founded by quantum physics pioneers from the University of Maryland and Duke University in 2015, IonQ (NYSE: IONQ) develops quantum computers that process information using trapped ions to solve complex computational problems beyond the capabilities of traditional computers.
Why Could IONQ Be a Winner?
- Market share has increased this cycle as its 181% annual revenue growth over the last two years was exceptional
- Notable projected revenue growth of 166% for the next 12 months hints at market share gains
- Adjusted operating margin expanded by 428.5 percentage points over the last five years as it scaled and became more efficient
IonQ’s stock price of $43.93 implies a valuation ratio of 24.7x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
Synchrony Financial (SYF)
Market Cap: $23.35 billion
Powering over 73 million active accounts and partnerships with major brands like Amazon, PayPal, and Lowe's, Synchrony Financial (NYSE: SYF) provides credit cards, installment loans, and banking products through partnerships with retailers, healthcare providers, and digital platforms.
Why Should You Buy SYF?
- Earnings per share grew by 35.5% annually over the last two years, massively outpacing its peers
- Annual tangible book value per share growth of 14.5% over the past five years was outstanding, reflecting strong capital accumulation this cycle
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
Synchrony Financial is trading at $71.91 per share, or 7.4x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
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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-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
