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 three mid-cap stocks to swipe left on and some alternatives you should look into instead.
The New York Times (NYT)
Market Cap: $12.01 billion
Founded in 1851, The New York Times (NYSE: NYT) is an American media organization known for its influential newspaper and expansive digital journalism platforms.
Why Do We Steer Clear of NYT?
- Demand for its offerings was relatively low as its number of subscribers has underwhelmed
- Poor expense management has led to an operating margin of 14.9% that is below the industry average
- Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 1.4 percentage points
At $70.44 per share, The New York Times trades at 23.6x forward P/E. Check out our free in-depth research report to learn more about why NYT doesn’t pass our bar.
Arrow Electronics (ARW)
Market Cap: $11.4 billion
Founded as a single retail store, Arrow Electronics (NYSE: ARW) provides electronic components and enterprise computing solutions to businesses globally.
Why Do We Pass on ARW?
- Annual sales growth of 1.8% over the last five years lagged behind its industrials peers as its large revenue base made it difficult to generate incremental demand
- Earnings per share fell by 1.5% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
- Waning returns on capital imply its previous profit engines are losing steam
Arrow Electronics’s stock price of $216 implies a valuation ratio of 11.7x forward P/E. To fully understand why you should be careful with ARW, check out our full research report (it’s free).
Solventum (SOLV)
Market Cap: $13.72 billion
Founded in 1985, Solventum (NYSE: SOLV) develops, manufactures, and commercializes a portfolio of healthcare products and services addressing critical customer and therapeutic patient needs.
Why Is SOLV Risky?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Estimated sales for the next 12 months are flat and imply a softer demand environment
- Free cash flow margin shrank by 30.8 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
Solventum is trading at $79.53 per share, or 11.7x forward P/E. If you’re considering SOLV for your portfolio, see our FREE research report to learn more.
Stocks We Like More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
