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.
These dynamics can rattle even the most seasoned professionals, which is why we started StockStory - to help you separate the good companies from the bad. Keeping that in mind, here are three mid-cap stocks to swipe left on and some alternatives you should look into instead.
Hormel Foods (HRL)
Market Cap: $13.45 billion
Best known for its SPAM brand, Hormel (NYSE: HRL) is a packaged foods company with products that span meat, poultry, shelf-stable foods, and spreads.
Why Should You Sell HRL?
- Shrinking unit sales over the past two years indicate demand is soft and that the company may need to revise its product strategy
- Gross margin of 16.2% is below its competitors, leaving less money to invest in areas like marketing and production facilities
- Earnings per share fell by 6.2% annually over the last three years while its revenue was flat, showing each sale was less profitable
At $24.39 per share, Hormel Foods trades at 16.1x forward P/E. Read our free research report to see why you should think twice about including HRL in your portfolio.
Hasbro (HAS)
Market Cap: $11.85 billion
Credited with the creation of toys such as Mr. Potato Head and the Rubik’s Cube, Hasbro (NASDAQ: HAS) is a global entertainment company offering a diverse range of toys, games, and multimedia experiences for children and families.
Why Is HAS Risky?
- Annual sales declines of 2.5% for the past five years show its products and services struggled to connect with the market
- Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 7.4% annually
- Unchanged returns on capital make it difficult for the company’s valuation multiple to re-rate
Hasbro is trading at $77.68 per share, or 13x forward P/E. If you’re considering HAS for your portfolio, see our FREE research report to learn more.
Assurant (AIZ)
Market Cap: $12.81 billion
With roots dating back to 1892 when it was founded by a Civil War veteran, Assurant (NYSE: AIZ) provides specialized insurance products and services that protect major consumer purchases like mobile devices, vehicles, homes, and appliances.
Why Are We Hesitant About AIZ?
- Net premiums earned only expanded by 5.2% annually over the last five years, trailing its insurance peers as its scale limited incremental business
- Earnings per share lagged its peers over the last two years as they only grew by 13% annually
- Large asset base makes it harder to grow book value per share quickly, and its annual book value per share growth of 4.2% over the last five years was below our standards for the insurance sector
Assurant’s stock price of $279.14 implies a valuation ratio of 2.2x forward P/B. To fully understand why you should be careful with AIZ, check out our full research report (it’s free).
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
