Mid-cap stocks have the best odds of scaling into $100 billion corporations thanks to their tested business models and large addressable markets. But the many opportunities in front of them attract significant competition, spanning from industry behemoths with seemingly infinite resources to small, nimble players with chips on their shoulders.
This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. That said, here are two mid-cap stocks with huge upside potential and one best left ignored.
One Mid-Cap Stock to Sell:
Moderna (MRNA)
Market Cap: $10.16 billion
Rising to global prominence during the COVID-19 pandemic with one of the first effective vaccines, Moderna (NASDAQ: MRNA) develops messenger RNA (mRNA) medicines that direct the body's cells to produce proteins with therapeutic or preventive benefits for various diseases.
Why Do We Think MRNA Will Underperform?
- Annual sales declines of 46.3% for the past two years show its products and services struggled to connect with the market during this cycle
- Free cash flow margin shrank by 242.8 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Short cash runway increases the probability of a capital raise that dilutes existing shareholders
Moderna is trading at $26.18 per share, or 5.5x forward price-to-sales. To fully understand why you should be careful with MRNA, check out our full research report (it’s free for active Edge members).
Two Mid-Cap Stocks to Watch:
Toast (TOST)
Market Cap: $21.86 billion
Born from the frustrations of three friends waiting too long for their restaurant bill, Toast (NYSE: TOST) provides a cloud-based digital technology platform with software, payment processing, and hardware solutions built specifically for restaurants.
Why Could TOST Be a Winner?
- ARR trends over the last year show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
- Projected revenue growth of 20.9% for the next 12 months suggests its momentum from the last two years will persist
At $37.79 per share, Toast trades at 3.4x forward price-to-sales. Is now a good time to buy? See for yourself in our full research report, it’s free for active Edge members.
Erie Indemnity (ERIE)
Market Cap: $16.56 billion
Operating under a unique business model dating back to 1925, Erie Indemnity (NASDAQ: ERIE) serves as the attorney-in-fact for Erie Insurance Exchange, managing policy issuance, claims handling, and investment services for this reciprocal insurer.
Why Are We Backing ERIE?
- Annual revenue growth of 14.4% over the last two years was superb and indicates its market share increased during this cycle
- Annual book value per share growth of 12.8% over the past five years was outstanding, reflecting strong capital accumulation this cycle
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
Erie Indemnity’s stock price of $315 implies a valuation ratio of 4.2x trailing 12-month price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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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