1 Mid-Cap Stock with Exciting Potential and 2 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.
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 huge upside potential and two that could be down big.
Two Mid-Cap Stocks to Sell:
Avery Dennison (AVY)
Market Cap: $13.27 billion
Founded as Kum Kleen Products, Avery Dennison (NYSE:AVY) is a manufacturer of adhesive materials, display graphics, and packaging products, serving various industries.
Why Does AVY Give Us Pause?
- 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
- Estimated sales growth of 2.1% for the next 12 months implies demand will slow from its two-year trend
- Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 2.9% annually
Avery Dennison is trading at $175.06 per share, or 16.7x forward P/E. To fully understand why you should be careful with AVY, check out our full research report (it’s free).
FactSet (FDS)
Market Cap: $10.74 billion
Founded in 1978 when financial data was still primarily delivered through paper reports, FactSet (NYSE:FDS) provides financial data, analytics, and technology solutions that investment professionals use to research, analyze, and manage their portfolios.
Why Does FDS Worry Us?
- Sales trends were unexciting over the last two years as its 5.8% annual growth was below the typical financials company
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 5.9% annually
FactSet’s stock price of $302 implies a valuation ratio of 15.8x forward P/E. If you’re considering FDS for your portfolio, see our FREE research report to learn more.
One Mid-Cap Stock to Watch:
Rollins (ROL)
Market Cap: $17.25 billion
Operating under multiple brands like Orkin and HomeTeam Pest Defense, Rollins (NYSE:ROL) provides pest and wildlife control services to residential and commercial customers.
Why Should ROL Be on Your Watchlist?
- Impressive 11.3% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Offerings are mission-critical for businesses and result in a best-in-class gross margin of 52.2%
- Strong free cash flow margin of 16.1% enables it to reinvest or return capital consistently, and its growing cash flow gives it even more resources to deploy
At $36.15 per share, Rollins trades at 29.5x forward P/E. Is now a good time to buy? See for yourself in our full 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-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.