1 Mid-Cap Stock to Consider Right Now and 2 We Turn Down

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 massive growth potential and two that could be down big.

Market Cap: $12.66 billion

Founded by the former Mirage Resorts CEO, Wynn Resorts (NASDAQ:WYNN) is a global developer and operator of high-end hotels and casinos, known for its luxurious properties and premium guest services.

Why Do We Think Twice About WYNN?

1. Annual revenue growth of 11.7% over the last two years was below our standards for the consumer discretionary sector

2. Low returns on capital reflect management’s struggle to allocate funds effectively

3. 5× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly

At $123.33 per share, Wynn Resorts trades at 24.8x forward P/E. To fully understand why you should be careful with WYNN, check out our full research report (it’s free for active Edge members).

Market Cap: $14.88 billion

Operating as a real estate investment trust since 1996 with a focus on generating income from interest rate spreads, Annaly Capital Management (NYSE:NLY) is a diversified capital manager that invests in agency mortgage-backed securities, residential mortgage loans, and mortgage servicing rights.

Why Do We Think NLY Will Underperform?

1. Muted 4.7% annual net interest income growth over the last five years shows its demand lagged behind its banking peers

2. Inferior net interest margin of 0.5% means it must compensate for lower profitability through increased loan originations

3. Earnings per share have contracted by 7.3% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance

Annaly Capital Management is trading at $21.71 per share, or 1.1x forward P/B. Check out our free in-depth research report to learn more about why NLY doesn’t pass our bar.

Market Cap: $20.69 billion

Founded in 1991 and evolving from a genomics research firm to a commercial-stage drug developer, Incyte (NASDAQ:INCY) is a biopharmaceutical company that discovers, develops, and commercializes proprietary therapeutics for cancer and inflammatory diseases.

Why Are We Fans of INCY?

1. Annual revenue growth of 15.5% over the last two years beat the sector average and underscores the unique value of its offerings

2. Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue

3. Free cash flow margin jumped by 5.5 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

Incyte’s stock price of $106.62 implies a valuation ratio of 14.3x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.

The market’s up big this year – but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking – and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 9 Market-Beating Stocks. 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-micro-cap company Tecnoglass (+1,754% 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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