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 is one mid-cap stock with massive growth potential and two that may have trouble.
Two Mid-Cap Stocks to Sell:
Graco (GGG)
Market Cap: $12.35 billion
Founded in 1926, Graco (NYSE: GGG) is an industrial company specializing in the development and manufacturing of fluid-handling systems and products.
Why Is GGG Not Exciting?
- Sales trends were unexciting over the last two years as its 2.6% annual growth was below the typical industrials company
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 1.5% annually
- Eroding returns on capital suggest its historical profit centers are aging
Graco’s stock price of $76.24 implies a valuation ratio of 22.6x forward P/E. Dive into our free research report to see why there are better opportunities than GGG.
Zoetis (ZTS)
Market Cap: $29.5 billion
Originally spun off from Pfizer in 2013 as the world's largest pure-play animal health company, Zoetis (NYSE: ZTS) discovers, develops, and sells medicines, vaccines, diagnostic products, and services for pets and livestock animals worldwide.
Why Are We Cautious About ZTS?
- 2.7% annual revenue growth over the last two years was slower than its healthcare peers
- Demand is forecasted to shrink as its estimated sales for the next 12 months are flat
- Unchanged returns on capital make it difficult for the company’s valuation multiple to re-rate
Zoetis is trading at $72.00 per share, or 11.8x forward P/E. If you’re considering ZTS for your portfolio, see our FREE research report to learn more.
One Mid-Cap Stock to Buy:
MasTec (MTZ)
Market Cap: $17 billion
Involved in the 1996 Olympic Games MasTec (NYSE: MTZ) is an infrastructure construction company that specializes in the telecommunications, energy, and utility industries.
What Makes MTZ Stand Out?
- Average backlog growth of 24.9% over the past two years shows it has a steady sales pipeline that will drive future orders
- Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 25.1%
- Earnings per share have massively outperformed its peers over the last two years, increasing by 82.9% annually
At $214.91 per share, MasTec trades at 19.1x forward P/E. Is now a good 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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
