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. That said, here is one mid-cap stock with huge upside potential and two best left ignored.
Two Mid-Cap Stocks to Sell:
Donaldson (DCI)
Market Cap: $10.65 billion
Playing a vital role in the historic Apollo 11 mission, Donaldson (NYSE:DCI) manufacturers and sells filtration equipment for various industries.
Why Are We Cautious About DCI?
- Annual revenue growth of 4.1% over the last two years was below our standards for the industrials sector
- Constant currency revenue growth has disappointed over the past two years and shows demand was soft
- Diminishing returns on capital suggest its earlier profit pools are drying up
Donaldson’s stock price of $91.90 implies a valuation ratio of 21.4x forward P/E. Check out our free in-depth research report to learn more about why DCI doesn’t pass our bar.
Verisk (VRSK)
Market Cap: $24.96 billion
Processing over 2.8 billion insurance transaction records annually through one of the world's largest private databases, Verisk Analytics (NASDAQ:VRSK) provides data, analytics, and technology solutions that help insurance companies assess risk, detect fraud, and make better business decisions.
Why Are We Wary of VRSK?
- 1.7% annual revenue growth over the last five years was slower than its business services peers
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 8% annually
At $191.79 per share, Verisk trades at 23.4x forward P/E. To fully understand why you should be careful with VRSK, check out our full research report (it’s free).
One Mid-Cap Stock to Watch:
Halozyme Therapeutics (HALO)
Market Cap: $11.96 billion
Known for transforming hours-long intravenous infusions into minutes-long subcutaneous injections, Halozyme Therapeutics (NASDAQ:HALO) develops and licenses its proprietary ENHANZE technology that enables subcutaneous delivery of injectable drugs that would otherwise require intravenous administration.
Why Are We Fans of HALO?
- Annual revenue growth of 38% over the past two years was outstanding, reflecting market share gains this cycle
- Earnings per share have massively outperformed its peers over the last five years, increasing by 24.7% annually
- HALO is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
Halozyme Therapeutics is trading at $103.09 per share, or 10.9x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
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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 Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.