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. That said, here is one mid-cap stock with a long growth runway and two that may have trouble.
Two Mid-Cap Stocks to Sell:
IDEX (IEX)
Market Cap: $17.2 billion
Founded in 1988, IDEX (NYSE: IEX) is a global manufacturer specializing in highly engineered products such as pumps, flow meters, and fluidics systems for various industries.
Why Does IEX Fall Short?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 3.5% annually
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
IDEX’s stock price of $233.23 implies a valuation ratio of 25.6x forward P/E. To fully understand why you should be careful with IEX, check out our full research report (it’s free).
HP (HPQ)
Market Cap: $27.25 billion
Born from the legendary Silicon Valley garage startup founded by Bill Hewlett and Dave Packard in 1939, HP (NYSE: HPQ) designs and sells personal computers, printers, and related technology products and services to consumers, businesses, and enterprises worldwide.
Why Is HPQ Risky?
- Annual sales declines of 1.2% for the past five years show its products and services struggled to connect with the market during this cycle
- Demand is forecasted to shrink as its estimated sales for the next 12 months are flat
- Earnings per share were flat over the last two years while its revenue grew, showing its incremental sales were less profitable
At $29.81 per share, HP trades at 11x forward P/E. Check out our free in-depth research report to learn more about why HPQ doesn’t pass our bar.
One Mid-Cap Stock to Watch:
W. R. Berkley (WRB)
Market Cap: $27.52 billion
Founded in 1967 and operating through more than 50 specialized insurance units across the globe, W. R. Berkley (NYSE: WRB) underwrites commercial insurance and reinsurance through specialized subsidiaries serving industries from healthcare to construction to transportation.
Why Should WRB Be on Your Watchlist?
- 11.3% annualized net premiums earned expansion over the last five years exceeded the sector average as its policies appealed to customers
- Exciting book value per share outlook for the upcoming 12 months calls for 24.4% growth, an acceleration from its two-year trend
- Industry-leading 20% return on equity demonstrates management’s skill in finding high-return investments
W. R. Berkley is trading at $71.56 per share, or 2.6x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
