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.

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 are two mid-cap stocks with massive growth potential and one best left ignored.

One Mid-Cap Stock to Sell:

GameStop (GME)

Market Cap: $10.33 billion

Drawing gaming fans with demo units set up with the latest releases, GameStop (NYSE: GME) sells new and used video games, consoles, and accessories, as well as pop culture merchandise.

Why Do We Pass on GME?

1. GameStop’s brick-and-mortar engine keeps stalling as gamers migrate to digital downloads, and management is closing more outlets after shuttering hundreds of stores last year
2. The share price remains an unpredictable meme-stock roller-coaster, and the purchase of thousands of Bitcoins have fueled huge swings
3. On the bright side, the company has a large cash pile that gives CEO Ryan Cohen room to buy more Bitcoin or fund its collectibles and trading-card push

GameStop is trading at $23.23 per share, or 46.2x forward P/E. To fully understand why you should be careful with GME, check out our full research report (it’s free).

Two Mid-Cap Stocks to Watch:

AeroVironment (AVAV)

Market Cap: $11.68 billion

Focused on the future of autonomous military combat, AeroVironment (NASDAQ: AVAV) specializes in advanced unmanned aircraft systems and electric vehicle charging solutions.

Why Should AVAV Be on Your Watchlist?

1. Market share has increased this cycle as its 23.2% annual revenue growth over the last two years was exceptional
2. Exciting sales outlook for the upcoming 12 months calls for 144% growth, an acceleration from its two-year trend
3. Earnings per share have massively outperformed its peers over the last two years, increasing by 63.4% annually

At $247.82 per share, AeroVironment trades at 61.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Broadridge (BR)

Market Cap: $28.03 billion

Processing over $10 trillion in equity and fixed income trades daily and managing proxy voting for over 800 million equity positions, Broadridge Financial Solutions (NYSE: BR) provides technology-driven solutions that power investing, governance, and communications for banks, broker-dealers, asset managers, and public companies.

Why Are We Positive On BR?

1. Impressive 9.1% annual revenue growth over the last five years indicates it’s winning market share this cycle
2. Performance over the past five years shows its incremental sales were more profitable, as its annual earnings per share growth of 11.7% outpaced its revenue gains
3. Free cash flow margin expanded by 4.4 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends

Broadridge’s stock price of $238.59 implies a valuation ratio of 26.9x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out 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 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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