Mid-cap stocks often strike the right balance between having proven business models and market opportunities that can support $100 billion corporations. However, they face intense competition from scaled industry giants and can be disrupted by new innovative players vying for a slice of the pie.
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 is one mid-cap stock with massive growth potential and two that may have trouble.
Two Mid-Cap Stocks to Sell:
J. M. Smucker (SJM)
Market Cap: $12.46 billion
Best known for its fruit jams and spreads, J.M Smucker (NYSE: SJM) is a packaged foods company whose products span from peanut butter and coffee to pet food.
Why Is SJM Risky?
- Shrinking unit sales over the past two years suggest it might have to lower prices to stimulate growth
- Estimated sales decline of 3.1% for the next 12 months implies a challenging demand environment
- Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its decreasing returns suggest its historical profit centers are aging
J. M. Smucker is trading at $110.80 per share, or 11x forward P/E. Check out our free in-depth research report to learn more about why SJM doesn’t pass our bar.
Advanced Energy (AEIS)
Market Cap: $12.95 billion
Pioneering technologies for radio frequency power delivery, Advanced Energy (NASDAQ: AEIS) provides power supplies, thermal management systems, and measurement and control instruments for various manufacturing processes.
Why Do We Think Twice About AEIS?
- Annual revenue growth of 5.6% over the last five years was below our standards for the industrials sector
- Earnings per share lagged its peers over the last five years as they only grew by 5.3% annually
- Waning returns on capital imply its previous profit engines are losing steam
Advanced Energy’s stock price of $374 implies a valuation ratio of 37.3x forward P/E. To fully understand why you should be careful with AEIS, check out our full research report (it’s free).
One Mid-Cap Stock to Buy:
Fair Isaac Corporation (FICO)
Market Cap: $27.49 billion
Creator of the three-digit number that can determine whether you get a mortgage or credit card, Fair Isaac Corporation (NYSE: FICO) develops analytics software and the widely used FICO Score, which is the standard measure of consumer credit risk in the United States.
Why Is FICO a Top Pick?
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 29.3% exceeded its revenue gains over the last two years
- Robust free cash flow margin of 34% gives it many options for capital deployment, and its rising cash conversion increases its margin of safety
- Rising returns on capital show management is finding more attractive investment opportunities
At $1,090 per share, Fair Isaac Corporation trades at 22.4x forward P/E. Is now the right time to buy? Find out in our full 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 (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
