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:
Lumen (LUMN)
Market Cap: $9.96 billion
With approximately 350,000 route miles of fiber optic cable spanning North America and the Asia Pacific, Lumen Technologies (NYSE: LUMN) operates a vast fiber optic network that provides communications, cloud connectivity, security, and IT solutions to businesses and consumers.
Why Do We Think LUMN Will Underperform?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 10% annually over the last five years
- Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 17.8% annually, worse than its revenue
- 7.3 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
Lumen is trading at $9.67 per share, or 0.9x forward price-to-sales. Dive into our free research report to see why there are better opportunities than LUMN.
Globe Life (GL)
Market Cap: $12.22 billion
With roots dating back to 1900 and a rebranding from Torchmark Corporation in 2019, Globe Life (NYSE: GL) is an insurance holding company that offers life insurance, supplemental health insurance, and annuity products through various distribution channels.
Why Is GL Not Exciting?
- 4.5% annual revenue growth over the last two years was slower than its insurance peers
- Growth in insurance policies was lackluster over the last two years as its 4.9% annual growth underperformed the typical financial institution
- Products and services are facing profitability challenges during this cycle, as seen in its flat book value per share over the last five years
At $151.07 per share, Globe Life trades at 1.8x forward P/B. Check out our free in-depth research report to learn more about why GL doesn’t pass our bar.
One Mid-Cap Stock to Watch:
Zebra (ZBRA)
Market Cap: $12.39 billion
Taking its name from the black and white stripes of barcodes, Zebra Technologies (NASDAQ: ZBRA) provides barcode scanners, mobile computers, RFID systems, and other data capture technologies that help businesses track assets and optimize operations.
Why Does ZBRA Stand Out?
- Core business can prosper without any help from acquisitions as its organic revenue growth averaged 12.5% over the past two years
- Share buybacks catapulted its annual earnings per share growth to 37.9%, which outperformed its revenue gains over the last two years
- Strong free cash flow margin of 11.6% enables it to reinvest or return capital consistently
Zebra’s stock price of $261.40 implies a valuation ratio of 13.8x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum - both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks - FREE. Get Our Strong Momentum Stocks for Free HERE.
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.
