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.
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 that may have trouble.
One Mid-Cap Stock to Sell:
Genuine Parts (GPC)
Market Cap: $17.6 billion
Largely targeting the professional customer, Genuine Parts (NYSE:GPC) sells auto and industrial parts such as batteries, belts, bearings, and machine fluids.
Why Are We Cautious About GPC?
- Sizable revenue base leads to growth challenges as its 4% annual revenue increases over the last three years fell short of other consumer retail companies
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
- Free cash flow margin dropped by 3.3 percentage points over the last year, implying the company became more capital intensive as competition picked up
Genuine Parts’s stock price of $126.52 implies a valuation ratio of 15.6x forward P/E. Dive into our free research report to see why there are better opportunities than GPC.
Two Mid-Cap Stocks to Watch:
Leidos (LDOS)
Market Cap: $23.65 billion
Formed through the split of IT services company SAIC, Leidos (NYSE:LDOS) offers technology and engineering solutions such as military training systems for the defense, civil, and health markets.
Why Do We Like LDOS?
- Sales pipeline is in good shape as its backlog averaged 15.2% growth over the past two years
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 27.6% exceeded its revenue gains over the last two years
- Free cash flow margin jumped by 3.3 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Leidos is trading at $185.30 per share, or 15.8x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Broadridge (BR)
Market Cap: $26.3 billion
Processing over $10 trillion in equity and fixed income trades daily and managing proxy voting for over 800 million equity positions, Broadridge Financial Solutions (NYSE:BR) provides technology-driven solutions that power investing, governance, and communications for banks, broker-dealers, asset managers, and public companies.
Why Could BR Be a Winner?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 8.9% annual sales growth over the last five years
- Free cash flow margin grew by 8.6 percentage points over the last five years, giving the company more chips to play with
- Returns on capital are climbing as management makes more lucrative bets
At $225.30 per share, Broadridge trades at 24.2x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
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 5 Strong Momentum 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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