1 Mid-Cap Stock on Our Watchlist and 2 to Ignore

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.

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 is one mid-cap stock with huge upside potential and two best left ignored.

Two Mid-Cap Stocks to Sell:

Genuine Parts (GPC)

Market Cap: $17.03 billion

Largely targeting the professional customer, Genuine Parts (NYSE:GPC) sells auto and industrial parts such as batteries, belts, bearings, and machine fluids.

Why Does GPC Fall Short?

1. Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
2. Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 2.3 percentage points
3. Capital intensity has ramped up over the last year as its free cash flow margin decreased by 1.1 percentage points

Genuine Parts’s stock price of $120.27 implies a valuation ratio of 15x forward price-to-earnings. To fully understand why you should be careful with GPC, check out our full research report (it’s free).

Tyson Foods (TSN)

Market Cap: $21.72 billion

Started as a simple trucking business, Tyson Foods (NYSE:TSN) is one of the world’s largest producers of chicken, beef, and pork.

Why Should You Sell TSN?

1. Annual sales growth of 2.7% over the last three years lagged behind its consumer staples peers as its large revenue base made it difficult to generate incremental demand
2. Commoditized products, bad unit economics, and high competition are reflected in its low gross margin of 6.6%
3. Earnings per share have contracted by 27.2% annually over the last three years, a headwind for returns as stock prices often echo long-term EPS performance

Tyson Foods is trading at $60.68 per share, or 16.6x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than TSN.

One Mid-Cap Stock to Watch:

Insulet (PODD)

Market Cap: $18.76 billion

Founded in 2000, Insulet Corporation (NASDAQ:PODD) designs and manufactures insulin delivery systems, with a focus on improving diabetes management through its Omnipod platform.

Why Does PODD Catch Our Eye?

1. Average constant currency growth of 25.7% over the past two years demonstrates its ability to grow internationally despite currency fluctuations
2. Performance over the past five years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 78% outpaced its revenue gains
3. Free cash flow margin jumped by 19.7 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

At $265.51 per share, Insulet trades at 68.5x forward price-to-earnings. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

With rates dropping, inflation stabilizing, and the elections in the rearview mirror, all signs point to the start of a new bull run - and we’re laser-focused on finding the best stocks for this upcoming cycle.

Put yourself in the driver’s seat by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.