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.
Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. That said, here are two mid-cap stocks with long growth runways and one that may have trouble.
One Mid-Cap Stock to Sell:
CooperCompanies (COO)
Market Cap: $11.63 billion
With a history dating back to 1958 and a portfolio spanning two distinct healthcare segments, Cooper Companies (NASDAQ: COO) develops and manufactures medical devices focused on vision care through contact lenses and women's health including fertility products and services.
Why Does COO Fall Short?
- Muted 6.4% annual revenue growth over the last two years shows its demand lagged behind its healthcare peers
- Free cash flow margin dropped by 6 percentage points over the last five years, implying the company became more capital intensive as competition picked up
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
At $59.62 per share, CooperCompanies trades at 12.9x forward P/E. Check out our free in-depth research report to learn more about why COO doesn’t pass our bar.
Two Mid-Cap Stocks to Buy:
APi (APG)
Market Cap: $18.74 billion
Started in 1926 as an insulation contractor, APi (NYSE: APG) provides life safety solutions and specialty services for buildings and infrastructure.
Why Is APG a Good Business?
- Annual revenue growth of 18.6% over the past five years was outstanding, reflecting market share gains this cycle
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 18.4% outpaced its revenue gains
- Free cash flow margin grew by 8.7 percentage points over the last five years, giving the company more chips to play with
APi is trading at $43.20 per share, or 25.4x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Texas Pacific Land (TPL)
Market Cap: $26.57 billion
One of America's largest private landowners with roughly 868,000 acres in the Permian Basin, Texas Pacific Land (NYSE: TPL) owns land in West Texas and earns revenue from oil and gas royalties, water services, and land leases.
Why Is TPL a Top Pick?
- Annual revenue growth of 31.3% over the past ten years was outstanding, reflecting market share gains this cycle
- Highly-profitable operating model results in strong unit economics and a best-in-class gross margin of 94.9%
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Texas Pacific Land’s stock price of $385.75 implies a valuation ratio of 30x forward EV-to-EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
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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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
