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.
Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. That said, here is one mid-cap stock with huge upside potential and two best left ignored.
Two Mid-Cap Stocks to Sell:
Generac (GNRC)
Market Cap: $12.12 billion
With its name deriving from a combination of “generating” and “AC”, Generac (NYSE: GNRC) offers generators and other power products for residential, industrial, and commercial use.
Why Does GNRC Fall Short?
- 5.1% annual revenue growth over the last two years was slower than its industrials peers
- Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 6.7 percentage points
- Earnings per share have dipped by 1.9% annually over the past five years, which is concerning because stock prices follow EPS over the long term
Generac’s stock price of $205.15 implies a valuation ratio of 20.3x forward P/E. Dive into our free research report to see why there are better opportunities than GNRC.
Guardant Health (GH)
Market Cap: $23.8 billion
Pioneering the field of "liquid biopsy" with technology that can identify cancer-specific genetic mutations from a simple blood draw, Guardant Health (NASDAQ: GH) develops blood tests that detect and monitor cancer by analyzing tumor DNA in the bloodstream, helping doctors make treatment decisions without invasive biopsies.
Why Are We Cautious About GH?
- Modest revenue base of $1.18 billion means it has less operating leverage but can also grow faster if it executes the right sales strategy
- Negative free cash flow raises questions about the return timeline for its investments
- Unprofitable operations could lead to additional rounds of dilutive equity financing if the credit window closes
At $177.65 per share, Guardant Health trades at 15.1x forward price-to-sales. Check out our free in-depth research report to learn more about why GH doesn’t pass our bar.
One Mid-Cap Stock to Watch:
Globus Medical (GMED)
Market Cap: $10.04 billion
With operations spanning 64 countries and a portfolio of over 10 new products launched in 2023 alone, Globus Medical (NYSE: GMED) develops and sells implantable devices, surgical instruments, and technology solutions for spine, orthopedic, and neurosurgical procedures.
Why Do We Like GMED?
- Constant currency growth averaged 20.7% over the past two years, showing it can expand globally regardless of the macroeconomic environment
- Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 18.3% annually
- Free cash flow margin increased by 8 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Globus Medical is trading at $74.78 per share, or 14.6x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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.
