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 a long growth runway and two best left ignored.
Two Mid-Cap Stocks to Sell:
Wynn Resorts (WYNN)
Market Cap: $11.71 billion
Founded by the former Mirage Resorts CEO, Wynn Resorts (NASDAQ: WYNN) is a global developer and operator of high-end hotels and casinos, known for its luxurious properties and premium guest services.
Why Should You Dump WYNN?
- Muted 18.3% annual revenue growth over the last five years shows its demand lagged behind its consumer discretionary peers
- Low free cash flow margin of 12.1% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
- 5× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
At $113.95 per share, Wynn Resorts trades at 20.3x forward P/E. Read our free research report to see why you should think twice about including WYNN in your portfolio.
First Horizon (FHN)
Market Cap: $11.78 billion
Tracing its roots back to 1864 during the Civil War era, First Horizon (NYSE: FHN) is a Tennessee-based bank holding company that provides commercial and consumer banking, wealth management, and specialty financial services across multiple states.
Why Does FHN Give Us Pause?
- Annual net interest income growth of 9.5% over the last five years was below our standards for the banking sector
- Estimated net interest income growth of 4% for the next 12 months implies demand will slow from its five-year trend
- Estimated tangible book value per share growth of 6.6% for the next 12 months implies profitability will slow from its two-year trend
First Horizon is trading at $24.27 per share, or 1.3x forward P/B. Check out our free in-depth research report to learn more about why FHN doesn’t pass our bar.
One Mid-Cap Stock to Watch:
Advanced Drainage (WMS)
Market Cap: $11.9 billion
Originally started as a farm water drainage company, Advanced Drainage Systems (NYSE: WMS) provides clean water management solutions to communities across America.
Why Are We Fans of WMS?
- Highly efficient business model is illustrated by its impressive 21.5% operating margin, and its rise over the last five years was fueled by some leverage on its fixed costs
- Free cash flow margin grew by 11.3 percentage points over the last five years, giving the company more chips to play with
- ROIC punches in at 22.8%, illustrating management’s expertise in identifying profitable investments, and its returns are climbing as it finds even more attractive growth opportunities
Advanced Drainage’s stock price of $153.03 implies a valuation ratio of 25.1x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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.
