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.
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 is one mid-cap stock with massive growth potential and two best left ignored.
Two Mid-Cap Stocks to Sell:
Tyson Foods (TSN)
Market Cap: $18.54 billion
Started as a simple trucking business, Tyson Foods (NYSE: TSN) is one of the world’s largest producers of chicken, beef, and pork.
Why Are We Out on TSN?
- Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 1.1% for the last three years
- Easily substituted products (and therefore stiff competition) result in an inferior gross margin of 7.4% that must be offset through higher volumes
- Earnings per share have contracted by 25.5% annually over the last three years, a headwind for returns as stock prices often echo long-term EPS performance
Tyson Foods’s stock price of $52.08 implies a valuation ratio of 14x forward P/E. Dive into our free research report to see why there are better opportunities than TSN.
Assurant (AIZ)
Market Cap: $10.97 billion
With roots dating back to 1892 when it was founded by a Civil War veteran, Assurant (NYSE: AIZ) provides specialized insurance products and services that protect major consumer purchases like mobile devices, vehicles, homes, and appliances.
Why Are We Hesitant About AIZ?
- Annual sales growth of 4.4% over the last five years lagged behind its insurance peers as its large revenue base made it difficult to generate incremental demand
- Net premiums earned only expanded by 4.7% annually over the last five years, trailing its insurance peers as its scale limited incremental business
- Sizable asset base leads to capital growth challenges as its 1.4% annual book value per share increases over the last five years fell short of other insurance companies
At $217.37 per share, Assurant trades at 1.9x forward P/B. If you’re considering AIZ for your portfolio, see our FREE research report to learn more.
One Mid-Cap Stock to Buy:
Pinterest (PINS)
Market Cap: $20.67 billion
Created with the idea of virtually replacing paper catalogues, Pinterest (NYSE: PINS) is an online image and social discovery platform.
Why Is PINS a Top Pick?
- Monthly Active Users are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
- Highly efficient business model is illustrated by its impressive 27.8% EBITDA margin, and its operating leverage amplified its profits over the last few years
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its recently improved profitability means it has even more resources to invest or distribute
Pinterest is trading at $30.97 per share, or 15.4x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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-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
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