December 11th, 2017

2 Mid-Cap Stocks with Solid Fundamentals and 1 We Avoid

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LULU Cover Image

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. Keeping that in mind, here are two mid-cap stocks with long growth runways and one that may have trouble.

One Mid-Cap Stock to Sell:

Everest Group (EG)

Market Cap: $13.31 billion

Rebranded from Everest Re in 2023 to reflect its evolution beyond just reinsurance, Everest Group (NYSE: EG) underwrites property and casualty reinsurance and insurance worldwide, serving insurance companies, corporations, and other clients across six continents.

Why Does EG Worry Us?

  1. Scale presents growth limitations compared to smaller competitors, evidenced by its below-average 4.5% annualized growth in net premiums earned for the last two years
  2. Sales are projected to tank by 9.5% over the next 12 months as demand evaporates
  3. Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 12.5% annually

At $371.08 per share, Everest Group trades at 0.9x forward P/B. If you’re considering EG for your portfolio, see our FREE research report to learn more.

Two Mid-Cap Stocks to Watch:

Lululemon (LULU)

Market Cap: $13.84 billion

Originally serving yogis and hockey players, Lululemon (NASDAQ: LULU) is a designer, distributor, and retailer of athletic apparel for men and women.

Why Is LULU a Good Business?

  1. Bold push to open new stores demonstrates an ambitious strategy to establish itself in underpenetrated territories
  2. Its collection of products is difficult to replicate at scale and leads to a best-in-class gross margin of 57.5%
  3. Highly efficient business model is illustrated by its impressive 20.8% operating margin

Lululemon’s stock price of $116.32 implies a valuation ratio of 10.2x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

Wintrust Financial (WTFC)

Market Cap: $10.51 billion

Founded in 1991 as a community-focused alternative to big banks in the Chicago area, Wintrust Financial (NASDAQGS:WTFC) operates community banks in the Chicago area and provides specialty finance services including insurance premium financing and wealth management.

Why Are We Fans of WTFC?

  1. Impressive 17% annual net interest income growth over the last five years indicates it’s winning market share this cycle
  2. Non-interest operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
  3. Annual tangible book value per share growth of 10.2% over the last five years was superb and indicates its capital strength increased during this cycle

Wintrust Financial is trading at $161.83 per share, or 1.4x forward P/B. Is now a good time to buy? Find out 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 meet 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.

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