Mid-cap stocks have the best odds of scaling into $100 billion corporations thanks to their tested business models and large addressable markets. But the many opportunities in front of them attract significant competition, spanning from industry behemoths with seemingly infinite resources to small, nimble players with chips on their shoulders.
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 that may have trouble.
Two Mid-Cap Stocks to Sell:
Manhattan Associates (MANH)
Market Cap: $11.77 billion
Built on a "versionless" cloud architecture that delivers quarterly updates to all customers, Manhattan Associates (NASDAQ: MANH) develops cloud-based software that helps retailers, wholesalers, and manufacturers manage their supply chains, inventory, and omnichannel operations.
Why Is MANH Not Exciting?
- Offerings struggled to generate meaningful interest as its average billings growth of 6.5% over the last year did not impress
- Sky-high servicing costs result in an inferior gross margin of 55.8% that must be offset through increased usage
- Efficiency has decreased over the last year as its operating margin fell by 1.5 percentage points
Manhattan Associates’s stock price of $201.71 implies a valuation ratio of 10.1x forward price-to-sales. Read our free research report to see why you should think twice about including MANH in your portfolio.
Globe Life (GL)
Market Cap: $12.81 billion
With roots dating back to 1900 and a rebranding from Torchmark Corporation in 2019, Globe Life (NYSE: GL) is an insurance holding company that offers life insurance, supplemental health insurance, and annuity products through various distribution channels.
Why Are We Cautious About GL?
- Sales trends were unexciting over the last two years as its 4.5% annual growth was below the typical insurance company
- Net premiums earned expanded by 5% annually over the last five years, falling below our expectations for the insurance sector
- Annual book value per share declines of 1.1% for the past five years show its capital management struggled during this cycle
Globe Life is trading at $166.76 per share, or 2x forward P/B. Dive into our free research report to see why there are better opportunities than GL.
One Mid-Cap Stock to Buy:
TD SYNNEX (SNX)
Market Cap: $20.3 billion
Serving as the crucial middleman in the technology supply chain, TD SYNNEX (NYSE: SNX) is a global technology distributor that connects thousands of IT manufacturers with resellers, helping businesses access hardware, software, and technology solutions.
Why Should You Buy SNX?
- Annual revenue growth of 15.2% over the past two years was outstanding, reflecting market share gains this cycle
- Unparalleled revenue scale of $75.67 billion gives it an edge in distribution
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
At $257.50 per share, TD SYNNEX trades at 11.2x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
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.
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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 Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
