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 are three mid-cap stocks to avoid and some other investments you should consider instead.

Skyworks Solutions (SWKS)

Market Cap: $10.04 billion

Result of a merger of Alpha Industries and the wireless communications division of Conexant, Skyworks Solutions (NASDAQ: SWKS) is a designer and manufacturer of chips used in smartphones, autos, and industrial applications to amplify, filter, and process wireless signals.

Why Do We Steer Clear of SWKS?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 5.6% annually over the last two years
2. Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
3. Operating margin declined by 19 percentage points over the last five years as its sales cratered

Skyworks Solutions is trading at $66.88 per share, or 13.4x forward P/E. Read our free research report to see why you should think twice about including SWKS in your portfolio.

Hasbro (HAS)

Market Cap: $13.84 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?

1. Annual sales declines of 3% for the past five years show its products and services struggled to connect with the market
2. Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 8.1% annually
3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

At $97.86 per share, Hasbro trades at 16.8x forward P/E. If you’re considering HAS for your portfolio, see our FREE research report to learn more.

CoStar (CSGP)

Market Cap: $13.38 billion

With a research department that makes over 10,000 property updates daily to its 35-year-old database, CoStar Group (NASDAQ: CSGP) provides comprehensive real estate data, analytics, and online marketplaces for commercial and residential properties in the U.S. and U.K.

Why Are We Hesitant About CSGP?

1. Incremental sales over the last five years were much less profitable as its earnings per share fell by 1.6% annually while its revenue grew
2. 17.4 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
3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

CoStar’s stock price of $32.91 implies a valuation ratio of 23.9x forward P/E. Dive into our free research report to see why there are better opportunities than CSGP.

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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.