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.
These dynamics can rattle even the most seasoned professionals, which is why we started StockStory - to help you separate the good companies from the bad. That said, here is one mid-cap stock with a long growth runway and two best left ignored.
Two Mid-Cap Stocks to Sell:
Graco (GGG)
Market Cap: $12.64 billion
Founded in 1926, Graco (NYSE: GGG) is an industrial company specializing in the development and manufacturing of fluid-handling systems and products.
Why Are We Hesitant About GGG?
- Muted 2.1% annual revenue growth over the last two years shows its demand lagged behind its industrials peers
- Flat earnings per share over the last two years lagged its peers
- Waning returns on capital imply its previous profit engines are losing steam
At $76.18 per share, Graco trades at 23.8x forward P/E. To fully understand why you should be careful with GGG, check out our full research report (it’s free).
Jacobs Solutions (J)
Market Cap: $13.42 billion
With a workforce of approximately 45,000 professionals tackling complex challenges from water scarcity to cybersecurity, Jacobs Solutions (NYSE: J) provides engineering, consulting, and technical services focused on infrastructure, sustainability, and advanced technology solutions.
Why Do We Think J Will Underperform?
- Annual sales declines of 6.2% for the past five years show its products and services struggled to connect with the market during this cycle
- Earnings per share have dipped by 6.8% annually over the past two years, which is concerning because stock prices follow EPS over the long term
- Low returns on capital reflect management’s struggle to allocate funds effectively
Jacobs Solutions’s stock price of $114.19 implies a valuation ratio of 14.4x forward P/E. Check out our free in-depth research report to learn more about why J doesn’t pass our bar.
One Mid-Cap Stock to Buy:
Natera (NTRA)
Market Cap: $27.57 billion
Founded in 2003 as Gene Security Network before rebranding in 2012, Natera (NASDAQ: NTRA) develops and commercializes genetic tests for prenatal screening, cancer detection, and organ transplant monitoring using its proprietary cell-free DNA technology.
Why Is NTRA a Top Pick?
- Average unit sales growth of 19.4% over the past two years reflects steady demand for its products
- Adjusted operating profits and efficiency rose over the last two years as it benefited from some fixed cost leverage
- Free cash flow margin is now positive, indicating the company has passed a significant test
Natera is trading at $194.88 per share, or 9.1x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
