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.
This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. Keeping that in mind, here is one mid-cap stock with massive growth potential and two that may have trouble.
Two Mid-Cap Stocks to Sell:
Hasbro (HAS)
Market Cap: $12.91 billion
Credited with the creation of toys such as Mr. Potato Head and the Rubik’s Cube, Hasbro (NASDAQ:HAS) is a global entertainment company offering a diverse range of toys, games, and multimedia experiences for children and families.
Why Do We Steer Clear of HAS?
- Sales tumbled by 3.5% annually over the last five years, showing consumer trends are working against it
- Poor expense management has led to an operating margin of 9.7% that is below the industry average
- Earnings growth underperformed the sector average over the last five years as its EPS grew by just 2.7% annually
Hasbro is trading at $91.57 per share, or 14.8x forward P/E. If you’re considering HAS for your portfolio, see our FREE research report to learn more.
Labcorp (LH)
Market Cap: $25.27 billion
With over 600 million tests performed annually and involvement in 90% of FDA-approved drugs in 2023, Labcorp (NYSE:LH) provides laboratory testing services and drug development solutions to doctors, hospitals, pharmaceutical companies, and patients worldwide.
Why Are We Wary of LH?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 2.6% annually over the last five years
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 12.4% annually, worse than its revenue
At $311.68 per share, Labcorp trades at 16.2x forward P/E. Check out our free in-depth research report to learn more about why LH doesn’t pass our bar.
One Mid-Cap Stock to Watch:
Toast (TOST)
Market Cap: $18.57 billion
Born from the frustrations of three friends waiting too long for their restaurant bill, Toast (NYSE:TOST) provides a cloud-based digital technology platform with software, payment processing, and hardware solutions built specifically for restaurants.
Why Are We Fans of TOST?
- ARR trends over the last year show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
- Estimated revenue growth of 19.9% for the next 12 months implies its momentum over the last two years will continue
Toast’s stock price of $32.20 implies a valuation ratio of 2.3x forward price-to-sales. Is now a good 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 Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.