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 are three mid-cap stocks to swipe left on and some alternatives you should look into instead.
Zoom (ZM)
Market Cap: $27.07 billion
Once the verb that defined remote work during the pandemic ("let's Zoom later"), Zoom (NASDAQ: ZM) provides a cloud-based platform for video meetings, phone calls, team chat, and collaboration tools that helps businesses and individuals connect virtually.
Why Do We Avoid ZM?
- Offerings struggled to generate meaningful interest as its average billings growth of 4.8% over the last year did not impress
- Net revenue retention rate of 98.3% shows it has a tough time retaining customers
- Anticipated sales growth of 4.2% for the next year implies demand will be shaky
Zoom’s stock price of $90.12 implies a valuation ratio of 5x forward price-to-sales. To fully understand why you should be careful with ZM, check out our full research report (it’s free).
DraftKings (DKNG)
Market Cap: $14.89 billion
Getting its start in daily fantasy sports, DraftKings (NASDAQ: DKNG) is a digital sports entertainment and gaming company.
Why Do We Pass on DKNG?
- Lackluster 24.3% annual revenue growth over the last two years indicates the company is losing ground to competitors
- Suboptimal cost structure is highlighted by its history of operating margin losses
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
DraftKings is trading at $25.74 per share, or 19.9x forward P/E. Dive into our free research report to see why there are better opportunities than DKNG.
Fidelity National Financial (FNF)
Market Cap: $12.81 billion
Issuing more title insurance policies than any other company in the United States, Fidelity National Financial (NYSE: FNF) provides title insurance and escrow services for real estate transactions while also offering annuities and life insurance through its F&G subsidiary.
Why Should You Sell FNF?
- Insurance policy sales contracted this cycle as net premiums earned decreased by 2.5% annually over the last five years
- Earnings per share fell by 3.5% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Book value per share was flat over the last five years, indicating it’s failed to build equity value this cycle
At $47.94 per share, Fidelity National Financial trades at 1.3x forward P/B. Read our free research report to see why you should think twice about including FNF in your portfolio.
Stocks We Like 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.
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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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
