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 best left ignored.
Two Mid-Cap Stocks to Sell:
Manhattan Associates (MANH)
Market Cap: $11.2 billion
Built on a "versionless" cloud architecture that delivers quarterly updates to all customers, Manhattan Associates (NASDAQ: MANH) develops cloud-based software that helps retailers, wholesalers, and manufacturers manage their supply chains, inventory, and omnichannel operations.
Why Do We Think Twice About MANH?
- Offerings struggled to generate meaningful interest as its average billings growth of 6.5% over the last year did not impress
- Gross margin of 55.8% reflects its high servicing costs
- Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 1.5 percentage points
Manhattan Associates’s stock price of $191.88 implies a valuation ratio of 9.3x forward price-to-sales. Check out our free in-depth research report to learn more about why MANH doesn’t pass our bar.
CNA Financial (CNA)
Market Cap: $14.16 billion
With roots dating back to 1853 and majority ownership by Loews Corporation, CNA Financial (NYSE: CNA) is a commercial property and casualty insurance provider offering coverage for businesses, including professional liability, surety bonds, and specialized risk management services.
Why Do We Avoid CNA?
- Net premiums earned only expanded by 6% annually over the last two years, trailing its insurance peers as its scale limited incremental business
- Incremental sales over the last two years were much less profitable as its earnings per share fell by 2.1% annually while its revenue grew
- Book value per share tumbled by 2.4% annually over the last five years, showing insurance sector trends are working against it during this cycle
At $52.37 per share, CNA Financial trades at 11.4x forward P/E. Dive into our free research report to see why there are better opportunities than CNA.
One Mid-Cap Stock to Buy:
Expand Energy (EXE)
Market Cap: $21.03 billion
Rebranded from Chesapeake Energy in 2024 after emerging from bankruptcy, Expand Energy (NASDAQ: EXE) produces natural gas, oil, and natural gas liquids from underground shale formations in Louisiana, Pennsylvania, Ohio, and West Virginia.
Why Is EXE a Top Pick?
- Annual revenue growth of 19.4% over the last five years was superb and indicates its market share increased during this cycle
- Enormous revenue base of $12.66 billion provides significant leverage in supplier negotiations
- EBITDA profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
Expand Energy is trading at $91.29 per share, or 11.1x forward P/E. Is now a good time to buy? See for yourself in our in-depth 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.
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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-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
