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.
Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. Keeping that in mind, here is one mid-cap stock with a long growth runway and two that could be down big.
Two Mid-Cap Stocks to Sell:
Tyson Foods (TSN)
Market Cap: $20.4 billion
Started as a simple trucking business, Tyson Foods (NYSE: TSN) is one of the world’s largest producers of chicken, beef, and pork.
Why Are We Out on TSN?
- Flat unit sales over the past two years imply it may need to invest in product improvements to get back on track
- Easily substituted products (and therefore stiff competition) result in an inferior gross margin of 7.1% that must be offset through higher volumes
- Incremental sales over the last three years were much less profitable as its earnings per share fell by 3.8% annually while its revenue grew
Tyson Foods is trading at $57.87 per share, or 13x forward P/E. If you’re considering TSN for your portfolio, see our FREE research report to learn more.
Dover (DOV)
Market Cap: $28.85 billion
A company that manufactured critical equipment for the United States military during World War II, Dover (NYSE: DOV) manufactures engineered components and specialized equipment for numerous industries.
Why Do We Think Twice About DOV?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 5.8% annually
- Diminishing returns on capital suggest its earlier profit pools are drying up
Dover’s stock price of $214.27 implies a valuation ratio of 19.7x forward P/E. Read our free research report to see why you should think twice about including DOV in your portfolio.
One Mid-Cap Stock to Watch:
Lennox (LII)
Market Cap: $19.18 billion
Based in Texas and founded over a century ago, Lennox (NYSE: LII) is a climate control solutions company offering heating, ventilation, air conditioning, and refrigeration (HVACR) goods.
Why Are We Fans of LII?
- Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
- Free cash flow margin expanded by 4.7 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
At $551.52 per share, Lennox trades at 22.1x 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
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
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-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
