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1 Mid-Cap Stock with Competitive Advantages and 2 We Avoid

DECK Cover Image

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.

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. That said, here is one mid-cap stock with massive growth potential and two best left ignored.

Two Mid-Cap Stocks to Sell:

Deckers (DECK)

Market Cap: $15.56 billion

Established in 1973, Deckers (NYSE: DECK) is a footwear and apparel conglomerate with a portfolio of lifestyle and performance brands.

Why Do We Avoid DECK?

  1. Constant currency revenue growth has disappointed over the past two years and shows demand was soft
  2. Operating margin of 23.4% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments
  3. Poor free cash flow margin of 18.5% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends

Deckers’s stock price of $106.99 implies a valuation ratio of 16.3x forward P/E. Dive into our free research report to see why there are better opportunities than DECK.

Zebra (ZBRA)

Market Cap: $12.58 billion

Taking its name from the black and white stripes of barcodes, Zebra Technologies (NASDAQ: ZBRA) provides barcode scanners, mobile computers, RFID systems, and other data capture technologies that help businesses track assets and optimize operations.

Why Does ZBRA Give Us Pause?

  1. Annual revenue growth of 1.7% over the last two years was below our standards for the business services sector
  2. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
  3. Free cash flow margin shrank by 7 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

At $248.32 per share, Zebra trades at 14.1x forward P/E. Check out our free in-depth research report to learn more about why ZBRA doesn’t pass our bar.

One Mid-Cap Stock to Watch:

Medpace (MEDP)

Market Cap: $16.08 billion

Founded in 1992 as a scientifically-driven alternative to traditional contract research organizations, Medpace (NASDAQ: MEDP) provides outsourced clinical trial management and research services to help pharmaceutical, biotechnology, and medical device companies develop new treatments.

Why Does MEDP Catch Our Eye?

  1. Core business is healthy and doesn’t need acquisitions to boost sales as its organic revenue growth averaged 15.1% over the past two years
  2. Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 18%
  3. Share repurchases over the last five years enabled its annual earnings per share growth of 34.2% to outpace its revenue gains

Medpace is trading at $569.54 per share, or 35.2x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.

Stocks We Like Even More

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 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-small-cap company Exlservice (+354% 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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