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2 Mid-Cap Stocks with Exciting Potential and 1 We Ignore
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.
Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. Keeping that in mind, here are two mid-cap stocks with long growth runways and one that may have trouble.
One Mid-Cap Stock to Sell:
US Foods (USFD)
Market Cap: $22.31 billion
With a fleet of over 6,500 trucks delivering everything from fresh produce to frozen entrées, US Foods (NYSE:USFD) is a major foodservice distributor that supplies food products and services to approximately 250,000 restaurants, healthcare facilities, hotels, and educational institutions across the United States.
Why Do We Think USFD Will Underperform?
- Average unit sales growth of 2.4% over the past two years reflects steady demand for its products
- Responsiveness to unforeseen market trends is restricted due to its substandard operating margin profitability
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
At $100.26 per share, US Foods trades at 20.6x forward P/E. Read our free research report to see why you should think twice about including USFD in your portfolio.
Two Mid-Cap Stocks to Watch:
ResMed (RMD)
Market Cap: $28.63 billion
Founded in 1989 to address the then-underdiagnosed condition of sleep apnea, ResMed (NYSE:RMD) develops cloud-connected medical devices and software solutions that treat sleep apnea, COPD, and other respiratory disorders for home and clinical use.
Why Are We Positive on RMD?
- Average constant currency growth of 9.1% over the past two years demonstrates its ability to grow internationally despite currency fluctuations
- Performance over the past five years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 15.2% outpaced its revenue gains
- Free cash flow margin grew by 21.4 percentage points over the last five years, giving the company more chips to play with
ResMed is trading at $197.68 per share, or 17.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
StoneX (SNEX)
Market Cap: $8.91 billion
Originally known as INTL FCStone until its 2020 rebranding, StoneX Group (NASDAQ:SNEX) provides a global financial services network connecting companies, traders, and investors to markets through clearing, execution, and advisory services.
Why Do We Love SNEX?
- Impressive 44.3% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Earnings per share grew by 29.6% annually over the last two years, massively outpacing its peers
- Balance sheet strength has increased this cycle as its 16.9% annual tangible book value per share growth over the last five years was exceptional
StoneX’s stock price of $114.32 implies a valuation ratio of 3.2x forward P/B. Is now a good time to buy? See for yourself in our in-depth 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 Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.