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. That said, here is one mid-cap stock with huge upside potential and two that could be down big.
Two Mid-Cap Stocks to Sell:
IQVIA (IQV)
Market Cap: $28.77 billion
Created from the 2016 merger of Quintiles (a clinical research organization) and IMS Health (a healthcare data specialist), IQVIA (NYSE: IQV) provides clinical research services, data analytics, and technology solutions to help pharmaceutical companies develop and market medications more effectively.
Why Are We Wary of IQV?
- Annual sales growth of 5.1% over the last two years lagged behind its healthcare peers as its large revenue base made it difficult to generate incremental demand
- Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn’t resonate with customers
- Expenses have increased as a percentage of revenue over the last two years as its adjusted operating margin fell by 1.1 percentage points
At $172.13 per share, IQVIA trades at 13.3x forward P/E. If you’re considering IQV for your portfolio, see our FREE research report to learn more.
First Citizens BancShares (FCNCA)
Market Cap: $21.84 billion
With roots dating back to 1898 and a significant expansion through its 2023 acquisition of Silicon Valley Bank, First Citizens BancShares (NASDAQGS:FCNC.A) is a bank holding company that provides financial services to individuals and businesses through its First-Citizens Bank & Trust Company subsidiary.
Why Are We Hesitant About FCNCA?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 3.7% annually over the last two years
- Concessions to defend its market share have ramped up over the last two years as its net interest margin decreased by 74.8 basis points (100 basis points = 1 percentage point)
- Sales were less profitable over the last two years as its earnings per share fell by 5.6% annually, worse than its revenue declines
First Citizens BancShares’s stock price of $1,909 implies a valuation ratio of 1x forward P/B. To fully understand why you should be careful with FCNCA, check out our full research report (it’s free).
One Mid-Cap Stock to Watch:
Leidos (LDOS)
Market Cap: $15.62 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 Does LDOS Stand Out?
- Average backlog growth of 17.6% over the past two years shows it has a steady sales pipeline that will drive future orders
- Share buybacks catapulted its annual earnings per share growth to 22.4%, which outperformed its revenue gains over the last two years
- Free cash flow margin jumped by 5.1 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 $124.50 per share, or 10.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
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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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
