Mid-cap stocks often strike the right balance between having proven business models and market opportunities that can support $100 billion corporations. However, they face intense competition from scaled industry giants and can be disrupted by new innovative players vying for a slice of the pie.
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 massive growth potential and two best left ignored.
Two Mid-Cap Stocks to Sell:
Warner Music Group (WMG)
Market Cap: $16.13 billion
Launching the careers of legendary artists like Frank Sinatra, Warner Music Group (NASDAQ: WMG) is a music company managing a diverse portfolio of artists, recordings, and music publishing services worldwide.
Why Do We Avoid WMG?
- Annual revenue growth of 8.5% over the last five years was below our standards for the consumer discretionary sector
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 9% for the last two years
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
Warner Music Group’s stock price of $30.88 implies a valuation ratio of 20.5x forward P/E. If you’re considering WMG for your portfolio, see our FREE research report to learn more.
STERIS (STE)
Market Cap: $26.33 billion
With a mission critical role in preventing healthcare-associated infections, STERIS (NYSE: STE) provides infection prevention products, sterilization services, and medical equipment that help healthcare facilities and life science companies maintain sterile environments.
Why Are We Hesitant About STE?
- ROIC of 4.9% reflects management’s challenges in identifying attractive investment opportunities
STERIS is trading at $268.20 per share, or 24.8x forward P/E. Read our free research report to see why you should think twice about including STE in your portfolio.
One Mid-Cap Stock to Buy:
Samsara (IOT)
Market Cap: $19.77 billion
From sensors on vehicles to AI-powered cameras that help prevent accidents, Samsara (NYSE: IOT) is a cloud-based Internet of Things platform that helps businesses improve the safety, efficiency, and sustainability of their physical operations.
Why Will IOT Beat the Market?
- Ability to secure long-term commitments with customers is evident in its 30.5% ARR growth over the last year
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
- Operating margin improvement of 19.7 percentage points over the last year demonstrates its ability to scale efficiently
At $34.34 per share, Samsara trades at 10.9x forward price-to-sales. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
Check out the high-quality names we’ve flagged in our Top 5 Strong Momentum Stocks for this week. 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.
