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.
This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. Keeping that in mind, here is one mid-cap stock with a long growth runway and two best left ignored.
Two Mid-Cap Stocks to Sell:
McCormick (MKC)
Market Cap: $18.43 billion
The classic red Heinz ketchup bottle’s competitor, McCormick (NYSE: MKC) sells food-flavoring products like condiments, spices, and seasoning mixes.
Why Are We Cautious About MKC?
- Sales trends were unexciting over the last three years as its 2.1% annual growth was below the typical consumer staples company
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Free cash flow margin dropped by 1.9 percentage points over the last year, implying the company became more capital intensive as competition picked up
At $68.57 per share, McCormick trades at 22x forward P/E. If you’re considering MKC for your portfolio, see our FREE research report to learn more.
SS&C (SSNC)
Market Cap: $21 billion
Founded in 1986 as a bridge between technology and financial services, SS&C Technologies (NASDAQ: SSNC) provides software and software-enabled services that help financial firms and healthcare organizations automate complex business processes.
Why Does SSNC Worry Us?
- Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 1.2 percentage points
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 4.1 percentage points
- Underwhelming 6.6% return on capital reflects management’s difficulties in finding profitable growth opportunities
SS&C’s stock price of $86.04 implies a valuation ratio of 13.2x forward P/E. To fully understand why you should be careful with SSNC, check out our full research report (it’s free).
One Mid-Cap Stock to Watch:
Ulta (ULTA)
Market Cap: $29.51 billion
Offering high-end prestige brands as well as lower-priced, mass-market ones, Ulta Beauty (NASDAQ: ULTA) is an American retailer that sells makeup, skincare, haircare, and fragrance products.
Why Does ULTA Stand Out?
- Store expansion strategy is justified by its healthy same-store sales
- Same-store sales growth averaged 2.6% over the past two years, showing it’s bringing new and repeat shoppers into its stores
- ROIC punches in at 32.3%, illustrating management’s expertise in identifying profitable investments
Ulta is trading at $665.36 per share, or 24.3x forward P/E. Is now a good time to buy? 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 Growth Stocks for this month. 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.
