1 Mid-Cap Stock with Exciting Potential and 2 We Turn Down
Many investors pay attention to mid-cap stocks because they have established business models and expansive market opportunities. However, their paths to becoming $100 billion corporations are ripe with competition, ranging from giants with vast resources to agile upstarts eager to disrupt the status quo.
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:
Graco (GGG)
Market Cap: $12.35 billion
Founded in 1926, Graco (NYSE:GGG) is an industrial company specializing in the development and manufacturing of fluid-handling systems and products.
Why Is GGG Not Exciting?
- Sales trends were unexciting over the last two years as its 2.6% annual growth was below the typical industrials company
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 1.5% annually
- Eroding returns on capital suggest its historical profit centers are aging
Graco’s stock price of $76.24 implies a valuation ratio of 22.6x forward P/E. Dive into our free research report to see why there are better opportunities than GGG.
Zoetis (ZTS)
Market Cap: $29.5 billion
Originally spun off from Pfizer in 2013 as the world's largest pure-play animal health company, Zoetis (NYSE:ZTS) discovers, develops, and sells medicines, vaccines, diagnostic products, and services for pets and livestock animals worldwide.
Why Are We Cautious About ZTS?
- 2.7% annual revenue growth over the last two years was slower than its healthcare peers
- Demand is forecasted to shrink as its estimated sales for the next 12 months are flat
- Unchanged returns on capital make it difficult for the company’s valuation multiple to re-rate
Zoetis is trading at $72.00 per share, or 11.8x forward P/E. If you’re considering ZTS for your portfolio, see our FREE research report to learn more.
One Mid-Cap Stock to Buy:
MasTec (MTZ)
Market Cap: $17 billion
Involved in the 1996 Olympic Games MasTec (NYSE:MTZ) is an infrastructure construction company that specializes in the telecommunications, energy, and utility industries.
What Makes MTZ Stand Out?
- Average backlog growth of 24.9% over the past two years shows it has a steady sales pipeline that will drive future orders
- Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 25.1%
- Earnings per share have massively outperformed its peers over the last two years, increasing by 82.9% annually
At $214.91 per share, MasTec trades at 19.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
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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 Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.