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 two mid-cap stocks with long growth runways and one best left ignored.
One Mid-Cap Stock to Sell:
Okta (OKTA)
Market Cap: $17.35 billion
Founded during the aftermath of the financial crisis in 2009, Okta (NASDAQ: OKTA) is a cloud-based software-as-a-service platform that helps companies manage identity for their employees and customers.
Why Are We Cautious About OKTA?
- Average billings growth of 9.9% over the last year was subpar, suggesting it struggled to push its software and might have to lower prices to stimulate demand
- Estimated sales growth of 9% for the next 12 months implies demand will slow from its three-year trend
- Free cash flow margin is forecasted to shrink by 1.4 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
At $99.04 per share, Okta trades at 6.2x forward price-to-sales. Check out our free in-depth research report to learn more about why OKTA doesn’t pass our bar.
Two Mid-Cap Stocks to Watch:
MACOM (MTSI)
Market Cap: $10.47 billion
Founded in the 1950s as Microwave Associates, a communications supplier to the US Army Signal Corp, today MACOM Technology Solutions (NASDAQ: MTSI) is a provider of analog chips used in optical, wireless, and satellite networks.
Why Could MTSI Be a Winner?
- Annual revenue growth of 9.9% over the last two years was superb and indicates its market share increased during this cycle
- Exciting sales outlook for the upcoming 12 months calls for 21.6% growth, an acceleration from its two-year trend
- Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 81.7% annually
MACOM is trading at $140.68 per share, or 37.5x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Insulet (PODD)
Market Cap: $21.19 billion
Revolutionizing diabetes care with its tubeless "Pod" technology, Insulet (NASDAQ: PODD) develops and manufactures innovative insulin delivery systems for people with diabetes, primarily through its Omnipod product line.
Why Is PODD a Top Pick?
- Constant currency growth averaged 26.6% over the past two years, showing it can expand globally regardless of the macroeconomic environment
- Incremental sales over the last five years have been highly profitable as its earnings per share increased by 113% annually, topping its revenue gains
- Free cash flow margin expanded by 21.9 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
Insulet’s stock price of $297.50 implies a valuation ratio of 68.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. 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-micro-cap company Tecnoglass (+1,754% 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
