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2 Mid-Cap Stocks with Solid Fundamentals and 1 Facing Challenges
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 are two mid-cap stocks with huge upside potential and one best left ignored.
One Mid-Cap Stock to Sell:
XPO (XPO)
Market Cap: $23.15 billion
Owning a mobile game simulating freight operations for the Tour de France, XPO (NYSE:XPO) is a transportation company specializing in expedited shipping services.
Why Do We Think Twice About XPO?
- Annual revenue growth of 3.4% over the last two years was below our standards for the industrials sector
- Revenue growth over the past five years was nullified by the company’s new share issuances as its earnings per share fell by 2.7% annually
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 1.6% for the last five years
XPO’s stock price of $197.79 implies a valuation ratio of 33.5x forward P/E. Dive into our free research report to see why there are better opportunities than XPO.
Two Mid-Cap Stocks to Watch:
Burlington (BURL)
Market Cap: $20.31 billion
Founded in 1972 as a discount coat and outerwear retailer, Burlington Stores (NYSE:BURL) is now an off-price retailer that has broadened into general apparel, footwear, and home goods.
Why Could BURL Be a Winner?
- Rapid rollout of new stores to capitalize on market opportunities makes sense given its strong same-store sales performance
- Comparable store sales rose by 3.5% on average over the past two years, demonstrating its ability to drive increased spending at existing locations
- Free cash flow margin grew by 6.4 percentage points over the last year, giving the company more chips to play with
At $323.89 per share, Burlington trades at 27.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Halozyme Therapeutics (HALO)
Market Cap: $12.28 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 Positive on HALO?
- Annual revenue growth of 38% over the last two years was superb and indicates its market share increased during this cycle
- Earnings per share grew by 24.7% annually over the last five years, massively outpacing its peers
- 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 $108.34 per share, or 10.8x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
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-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.