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.
Digging up these buried treasures isn’t easy, and that’s exactly why we created StockStory. Keeping that in mind, here are three of our favorite mid-cap stocks that could amplify your portfolio’s returns.
Ulta (ULTA)
Market Cap: $23.17 billion
Offering high-end prestige brands as well as lower-priced, mass-market ones, Ulta Beauty (NASDAQ: ULTA) is an American retailer that sells makeup, skincare, haircare, and fragrance products.
Why Do We Like ULTA?
- Fast expansion of new stores to reach markets with few or no locations is justified by its same-store sales growth
- Same-store sales growth averaged 3% over the past two years, showing it’s bringing new and repeat shoppers into its stores
- Industry-leading 32.7% return on capital demonstrates management’s skill in finding high-return investments
Ulta is trading at $531.85 per share, or 18.8x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Planet Labs (PL)
Market Cap: $12.77 billion
Pioneering the concept of "agile aerospace" with hundreds of small but powerful satellites, Planet Labs (NYSE: PL) operates the world's largest fleet of Earth observation satellites, capturing daily images of our planet to provide insights on deforestation, agriculture, and climate change.
Why Are We Backing PL?
- Average backlog growth of 157% over the past two years shows it has a steady sales pipeline that will drive future orders
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 65.4% outpaced its revenue gains
- Free cash flow margin is now positive, indicating the company has passed a significant test
At $36.81 per share, Planet Labs trades at 1,493.3x forward EV-to-EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.
Omnicom Group (OMC)
Market Cap: $21.92 billion
With a vast network of creative agencies that helped craft some of the most memorable ad campaigns in history, Omnicom Group (NYSE: OMC) is a strategic holding company that provides advertising, marketing, and communications services to many of the world's largest companies.
Why Is OMC a Good Business?
- Market share has increased this cycle as its 15.4% annual revenue growth over the last two years was exceptional
- Dominant market position is represented by its $19.82 billion in revenue and gives it fixed cost leverage when sales grow
- Free cash flow margin increased by 6.8 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Omnicom Group’s stock price of $76.96 implies a valuation ratio of 6.5x forward EV-to-EBITDA. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
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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.
