1 Mid-Cap Stock for Long-Term Investors and 2 We Question

HII Cover Image

Mid-cap stocks have the best odds of scaling into $100 billion corporations thanks to their tested business models and large addressable markets. But the many opportunities in front of them attract significant competition, spanning from industry behemoths with seemingly infinite resources to small, nimble players with chips on their shoulders.

Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. Keeping that in mind, here is one mid-cap stock with huge upside potential and two best left ignored.

Two Mid-Cap Stocks to Sell:

Huntington Ingalls (HII)

Market Cap: $14.91 billion

Building Nimitz-class aircraft carriers used in active service, Huntington Ingalls (NYSE: HII) develops marine vessels and their mission systems and maintenance services.

Why Is HII Risky?

  1. The company has faced growth challenges as its 4.4% annual revenue increases over the last two years fell short of other industrials companies
  2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 3.4%
  3. Earnings per share have contracted by 2.1% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance

Huntington Ingalls’s stock price of $374.55 implies a valuation ratio of 21.3x forward P/E. Dive into our free research report to see why there are better opportunities than HII.

Everest Group (EG)

Market Cap: $13.2 billion

Rebranded from Everest Re in 2023 to reflect its evolution beyond just reinsurance, Everest Group (NYSE: EG) underwrites property and casualty reinsurance and insurance worldwide, serving insurance companies, corporations, and other clients across six continents.

Why Does EG Give Us Pause?

  1. Estimated sales decline of 4.2% for the next 12 months implies a challenging demand environment
  2. Efficiency has decreased over the last two years as its pre-tax profit margin fell by 4 percentage points
  3. Earnings per share fell by 17.7% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable

Everest Group is trading at $326.97 per share, or 0.8x forward P/B. Check out our free in-depth research report to learn more about why EG doesn’t pass our bar.

One Mid-Cap Stock to Watch:

UL Solutions (ULS)

Market Cap: $17.23 billion

Founded in 1894 as a response to the growing dangers of electricity in American homes and businesses, UL Solutions (NYSE: ULS) provides testing, inspection, and certification services that help companies ensure their products meet safety, security, and sustainability standards.

Why Is ULS on Our Radar?

  1. Adjusted operating profits increased over the last four years as the company gained some leverage on its fixed costs and became more efficient
  2. Free cash flow margin grew by 7.6 percentage points over the last five years, giving the company more chips to play with
  3. ROIC punches in at 28.5%, illustrating management’s expertise in identifying profitable investments

At $85.71 per share, UL Solutions trades at 37.4x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.

Stocks We Like Even More

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.

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