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.
These dynamics can rattle even the most seasoned professionals, which is why we started StockStory - to help you separate the good companies from the bad. That said, here are two mid-cap stocks with massive growth potential and one that could be down big.
One Mid-Cap Stock to Sell:
Stifel (SF)
Market Cap: $11.16 billion
Tracing its roots back to 1890 when the firm was established in St. Louis, Stifel Financial (NYSE: SF) is a financial services firm that provides wealth management, investment banking, and institutional brokerage services to individuals, corporations, and institutions.
Why Does SF Worry Us?
- Earnings per share lagged its peers over the last five years as they only grew by 8.2% annually
- Annual book value per share growth of 6.8% over the last two years was below our standards for the financials sector
At $72.17 per share, Stifel trades at 11.1x forward P/E. Read our free research report to see why you should think twice about including SF in your portfolio.
Two Mid-Cap Stocks to Watch:
Teledyne (TDY)
Market Cap: $29 billion
Playing a role in mapping the ocean floor as we know it today, Teledyne (NYSE: TDY) offers digital imaging and instrumentation products for various industries.
Why Do We Watch TDY?
- Annual revenue growth of 14.7% over the past five years was outstanding, reflecting market share gains this cycle
- Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
- Robust free cash flow margin of 14.6% gives it many options for capital deployment, and its improved cash conversion implies it’s becoming a less capital-intensive business
Teledyne’s stock price of $630 implies a valuation ratio of 26.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Tenet Healthcare (THC)
Market Cap: $17.36 billion
With a network spanning nine states and serving primarily urban and suburban communities, Tenet Healthcare (NYSE: THC) operates a nationwide network of hospitals, ambulatory surgery centers, and outpatient facilities providing acute care and specialty healthcare services.
Why Could THC Be a Winner?
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 16.3% exceeded its revenue gains over the last five years
- Free cash flow margin expanded by 7.2 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
- Improving returns on capital reflect management’s ability to monetize investments
Tenet Healthcare is trading at $199.83 per share, or 11.8x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
