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. Keeping that in mind, here is one mid-cap stock with huge upside potential and two that could be down big.
Two Mid-Cap Stocks to Sell:
Crown Holdings (CCK)
Market Cap: $11.21 billion
Formerly Crown Cork & Seal, Crown Holdings (NYSE: CCK) produces packaging products for consumer marketing companies, including food, beverage, household, and industrial products.
Why Do We Think CCK Will Underperform?
- Constant currency revenue growth has disappointed over the past two years and shows demand was soft
- Anticipated sales growth of 2% for the next year implies demand will be shaky
- Gross margin of 20.3% reflects its high production costs
Crown Holdings is trading at $97.77 per share, or 14x forward P/E. If you’re considering CCK for your portfolio, see our FREE research report to learn more.
Baxter (BAX)
Market Cap: $15.99 billion
With a history dating back to 1931 and products used in over 100 countries, Baxter International (NYSE: BAX) provides essential healthcare products including dialysis therapies, IV solutions, infusion systems, surgical products, and patient monitoring technologies to hospitals and clinics worldwide.
Why Do We Steer Clear of BAX?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 10.3% annually over the last two years
- Weak constant currency growth over the past two years indicates challenges in maintaining its market share
- Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
At $31.10 per share, Baxter trades at 12.4x forward P/E. Check out our free in-depth research report to learn more about why BAX doesn’t pass our bar.
One Mid-Cap Stock to Buy:
Insulet (PODD)
Market Cap: $22.13 billion
Revolutionizing diabetes care with its tubeless "Pod" technology, Insulet (NASDAQ: PODD) develops and manufactures innovative insulin delivery systems for people with diabetes, primarily through its Omnipod product line.
Why Are We Bullish on PODD?
- Average constant currency growth of 26.6% over the past two years demonstrates its ability to grow internationally despite currency fluctuations
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 114% over the last five years outstripped its revenue performance
- Free cash flow margin increased by 21.9 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Insulet’s stock price of $313.30 implies a valuation ratio of 71.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking 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 176% over the last five years.
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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.
