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. That said, here is one mid-cap stock with massive growth potential and two best left ignored.

Two Mid-Cap Stocks to Sell:

Campbell's (CPB)

Market Cap: $9.20 billion

With its iconic canned soup as its cornerstone product, Campbell's (NASDAQ: CPB) is a packaged food company with an illustrious portfolio of brands.

Why Do We Avoid CPB?

1. Declining unit sales over the past two years imply it may need to invest in product improvements to get back on track
2. Forecasted revenue decline of 3% for the upcoming 12 months implies demand will fall off a cliff
3. Performance over the past three years shows its incremental sales were less profitable, as its 1.6% annual earnings per share growth trailed its revenue gains

Campbell’s stock price of $30.95 implies a valuation ratio of 11.9x forward P/E. Dive into our free research report to see why there are better opportunities than CPB.

J. M. Smucker (SJM)

Market Cap: $11.46 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 Do We Pass on SJM?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
2. Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 27.1 percentage points
3. ROIC of 2.2% reflects management’s challenges in identifying attractive investment opportunities, and its shrinking returns suggest its past profit sources are losing steam

J. M. Smucker is trading at $107.60 per share, or 11.4x forward P/E. Check out our free in-depth research report to learn more about why SJM doesn’t pass our bar.

One Mid-Cap Stock to Buy:

RenaissanceRe (RNR)

Market Cap: $11.78 billion

Born in Bermuda after the devastating Hurricane Andrew created a crisis in the catastrophe insurance market, RenaissanceRe (NYSE: RNR) provides property, casualty, and specialty reinsurance and insurance solutions to customers worldwide, primarily through intermediaries.

Why Will RNR Beat the Market?

1. Strong 22.2% annualized net premiums earned expansion over the last two years shows it’s capturing market share this cycle
2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 39.2% over the last two years outstripped its revenue performance
3. Impressive 27.8% annual book value per share growth over the last two years indicates it’s building equity value this cycle

At $250.22 per share, RenaissanceRe trades at 1.2x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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