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.
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 is one mid-cap stock with a long growth runway and two that could be down big.
Two Mid-Cap Stocks to Sell:
NetApp (NTAP)
Market Cap: $23.31 billion
Founded in 1992 as a pioneer in networked storage technology, NetApp (NASDAQ: NTAP) provides data storage and management solutions that help organizations store, protect, and optimize their data across on-premises data centers and public clouds.
Why Does NTAP Fall Short?
- Annual revenue growth of 3.1% over the last two years was below our standards for the business services sector
- Estimated sales growth of 3.9% for the next 12 months is soft and implies weaker demand
NetApp is trading at $118.64 per share, or 14.5x forward P/E. To fully understand why you should be careful with NTAP, check out our full research report (it’s free for active Edge members).
Affirm (AFRM)
Market Cap: $23.42 billion
Founded by PayPal co-founder Max Levchin with a mission to create honest financial products, Affirm (NASDAQ: AFRM) provides a payment network that allows consumers to make purchases and pay for them over time with transparent, flexible installment loans.
Why Are We Cautious About AFRM?
- Negative return on equity shows management lost money while trying to expand the business
- 7× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
Affirm’s stock price of $72.20 implies a valuation ratio of 24.9x forward P/E. If you’re considering AFRM for your portfolio, see our FREE research report to learn more.
One Mid-Cap Stock to Watch:
Hims & Hers Health (HIMS)
Market Cap: $10.73 billion
Originally launched with a focus on stigmatized conditions like hair loss and sexual health, Hims & Hers Health (NYSE: HIMS) operates a consumer-focused telehealth platform that connects patients with healthcare providers for prescriptions and wellness products.
Why Should HIMS Be on Your Watchlist?
- Average customer growth of 43.3% over the past two years demonstrates success in acquiring new clients that could increase their spending in the future
- Free cash flow margin jumped by 14.5 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
- Improving returns on capital suggest its past investments are beginning to deliver value
At $47.10 per share, Hims & Hers Health trades at 40.6x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.
Stocks We Like Even More
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 5 Strong Momentum Stocks for this week. 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-micro-cap company Tecnoglass (+1,754% 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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