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. Keeping that in mind, here are two mid-cap stocks with long growth runways and one that could be down big.
One Mid-Cap Stock to Sell:
GE HealthCare (GEHC)
Market Cap: $29.21 billion
Spun off from industrial giant General Electric in 2023 after over a century as its healthcare division, GE HealthCare (NASDAQ:GEHC) provides medical imaging equipment, patient monitoring systems, diagnostic pharmaceuticals, and AI-enabled healthcare solutions to hospitals and clinics worldwide.
Why Does GEHC Fall Short?
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Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
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Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 4.4%
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Day-to-day expenses have swelled relative to revenue over the last five years as its adjusted operating margin fell by 1.7 percentage points
At $64.66 per share, GE HealthCare trades at 12.6x forward P/E. Dive into our free research report to see why there are better opportunities than GEHC.
Two Mid-Cap Stocks to Watch:
W. R. Berkley (WRB)
Market Cap: $27.1 billion
Founded in 1967 and operating through more than 50 specialized insurance units across the globe, W. R. Berkley (NYSE:WRB) underwrites commercial insurance and reinsurance through specialized subsidiaries serving industries from healthcare to construction to transportation.
Why Is WRB Interesting?
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11.3% annualized net premiums earned expansion over the last five years exceeded the sector average as its policies appealed to customers
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Exciting book value per share outlook for the upcoming 12 months calls for 24.9% growth, an acceleration from its two-year trend
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Stellar return on equity showcases management’s ability to surface highly profitable business ventures
W. R. Berkley’s stock price of $69.11 implies a valuation ratio of 2.5x forward P/B. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
APA Corporation (APA)
Market Cap: $15.35 billion
Operating in three continents with a history stretching back to 1954, APA Corporation (NASDAQ:APA) explores for, develops, and produces crude oil, natural gas, and natural gas liquids in the U.S., Egypt, and the U.K. North Sea.
