Large trillion-dollar companies are tightening their grip on the market, often by acquiring smaller rivals. This trend will likely pick up with new regulatory leadership, but a few mid-sized businesses will continue prospering by anchoring themselves in unique market segments.
Finding these diamonds in the rough is hard, and we started StockStory to help. That said, here are three of our favorite mid-cap stocks that could be the next 50 baggers.
Rivian (RIVN)
Market Cap: $21.49 billion
The manufacturer of Amazon’s delivery trucks, Rivian (NASDAQ: RIVN) designs, manufactures, and sells electric vehicles and commercial delivery vans.
Why Are We Positive On RIVN?
- Market share has increased this cycle as its 24.2% annual revenue growth over the last two years was exceptional
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 33.4% annually, topping its revenue gains
At $17.50 per share, Rivian trades at 3.4x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
DexCom (DXCM)
Market Cap: $25.29 billion
Founded in 1999 and receiving its first FDA approval in 2006, DexCom (NASDAQ: DXCM) develops and sells continuous glucose monitoring systems that allow people with diabetes to track their blood sugar levels without repeated finger pricks.
Why Will DXCM Outperform?
- Core business is healthy and doesn’t need acquisitions to boost sales as its organic revenue growth averaged 16.8% over the past two years
- Earnings per share grew by 17.5% annually over the last five years and trumped its peers
- Free cash flow margin increased by 17.5 percentage points over the last five years, giving the company more capital to invest or return to shareholders
DexCom’s stock price of $64.67 implies a valuation ratio of 27.1x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
Humana (HUM)
Market Cap: $30.9 billion
With over 80% of its revenue derived from federal government contracts, Humana (NYSE: HUM) provides health insurance plans and healthcare services to approximately 17 million members, with a strong focus on Medicare Advantage plans for seniors.
Why Does HUM Stand Out?
- Massive revenue base of $126.3 billion gives it meaningful leverage when negotiating reimbursement rates
- Projected revenue growth of 11.1% for the next 12 months suggests its momentum from the last two years will persist
- ROIC punches in at 34.4%, illustrating management’s expertise in identifying profitable investments
Humana is trading at $254.59 per share, or 18x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 9 Market-Beating Stocks. 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-small-cap company Comfort Systems (+782% 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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