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.
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. Keeping that in mind, here are three mid-cap stocks to swipe left on and some alternatives you should look into instead.
Best Buy (BBY)
Market Cap: $14.06 billion
With humble beginnings as a stereo equipment seller, Best Buy (NYSE: BBY) now sells a broad selection of consumer electronics, appliances, and home office products.
Why Is BBY Risky?
- Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
- Gross margin of 22.5% is an output of its commoditized inventory
- Operating margin of 3% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments
At $67.14 per share, Best Buy trades at 10.7x forward P/E. To fully understand why you should be careful with BBY, check out our full research report (it’s free).
Dover (DOV)
Market Cap: $30.86 billion
A company that manufactured critical equipment for the United States military during World War II, Dover (NYSE: DOV) manufactures engineered components and specialized equipment for numerous industries.
Why Does DOV Fall Short?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 4.6% annually
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Dover’s stock price of $224.45 implies a valuation ratio of 21.1x forward P/E. Read our free research report to see why you should think twice about including DOV in your portfolio.
Everest Group (EG)
Market Cap: $13.11 billion
Rebranded from Everest Re in 2023 to reflect its evolution beyond just reinsurance, Everest Group (NYSE: EG) underwrites property and casualty reinsurance and insurance worldwide, serving insurance companies, corporations, and other clients across six continents.
Why Is EG Not Exciting?
- Projected sales decline of 2.8% for the next 12 months points to a tough demand environment ahead
- Operational productivity has decreased over the last two years as its combined ratio worsened by 7.9 percentage points
- Incremental sales over the last two years were much less profitable as its earnings per share fell by 17.7% annually while its revenue grew
Everest Group is trading at $322.03 per share, or 0.8x forward P/B. Dive into our free research report to see why there are better opportunities than EG.
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check 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 244% over the last five years (as of June 30, 2025).
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