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. Keeping that in mind, here are three mid-cap stocks to swipe left on and some alternatives you should look into instead.
Clean Harbors (CLH)
Market Cap: $12.71 billion
Established in 1980, Clean Harbors (NYSE: CLH) provides environmental and industrial services like hazardous and non-hazardous waste disposal and emergency spill cleanups.
Why Are We Hesitant About CLH?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
- 4.3 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
Clean Harbors is trading at $236.04 per share, or 28.4x forward P/E. Dive into our free research report to see why there are better opportunities than CLH.
Equifax (EFX)
Market Cap: $27.91 billion
Holding detailed financial records on over 800 million consumers worldwide and dating back to 1899, Equifax (NYSE: EFX) is a global data analytics company that collects, analyzes, and sells consumer and business credit information to lenders, employers, and other businesses.
Why Is EFX Not Exciting?
- Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 6.3 percentage points
- Performance over the past five years shows its incremental sales were less profitable, as its 4.5% annual earnings per share growth trailed its revenue gains
- ROIC of 10.9% reflects management’s challenges in identifying attractive investment opportunities, and its falling returns suggest its earlier profit pools are drying up
At $226 per share, Equifax trades at 27.6x forward P/E. Check out our free in-depth research report to learn more about why EFX doesn’t pass our bar.
American Financial Group (AFG)
Market Cap: $11.54 billion
With roots dating back to 1872 and a business model that empowers local decision-making, American Financial Group (NYSE: AFG) is an insurance holding company that specializes in commercial property and casualty insurance products for businesses through its Great American Insurance Group.
Why Are We Cautious About AFG?
- Growth in insurance policies was lackluster over the last two years as its 6.1% annual growth underperformed the typical financial institution
- Earnings per share fell by 5.5% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
- Book value per share tumbled by 5.3% annually over the last five years, showing insurance sector trends are working against its favor during this cycle
American Financial Group’s stock price of $138.34 implies a valuation ratio of 2.4x forward P/B. Read our free research report to see why you should think twice about including AFG in your portfolio.
Stocks We Like More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.