ETFOptimize | High-performance ETF-based Investment Strategies

Quantitative strategies, Wall Street-caliber research, and insightful market analysis since 1998.


ETFOptimize | HOME
Close Window

3 Mid-Cap Stocks That Concern Us

CLX 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.

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 swipe left on and some alternatives you should look into instead.

Clorox (CLX)

Market Cap: $12.65 billion

Founded in 1913 with bleach as the sole product offering, Clorox (NYSE: CLX) today is a consumer products giant whose product portfolio spans everything from bleach to skincare to salad dressing to kitty litter.

Why Are We Hesitant About CLX?

  1. Annual sales declines of 1.3% for the past three years show its products struggled to connect with the market
  2. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
  3. Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment

At $103.80 per share, Clorox trades at 16.2x forward P/E. If you’re considering CLX for your portfolio, see our FREE research report to learn more.

Zebra (ZBRA)

Market Cap: $12.19 billion

Taking its name from the black and white stripes of barcodes, Zebra Technologies (NASDAQ: ZBRA) provides barcode scanners, mobile computers, RFID systems, and other data capture technologies that help businesses track assets and optimize operations.

Why Do We Think Twice About ZBRA?

  1. 1.7% annual revenue growth over the last two years was slower than its business services peers
  2. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
  3. Free cash flow margin shrank by 7 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

Zebra is trading at $240.42 per share, or 14.1x forward P/E. Read our free research report to see why you should think twice about including ZBRA in your portfolio.

CNA Financial (CNA)

Market Cap: $12.53 billion

With roots dating back to 1853 and majority ownership by Loews Corporation, CNA Financial (NYSE: CNA) is a commercial property and casualty insurance provider offering coverage for businesses, including professional liability, surety bonds, and specialized risk management services.

Why Does CNA Fall Short?

  1. Large revenue base constrains its growth potential, as seen in its unexciting 7.3% annualized increases in net premiums earned over the last five years fell below our expectations for the insurance sector
  2. Earnings per share lagged its peers over the last two years as they only grew by 6.8% annually
  3. Annual book value per share declines of 1.1% for the past five years show its capital management struggled during this cycle

CNA Financial’s stock price of $46.29 implies a valuation ratio of 9.7x forward P/E. Dive into our free research report to see why there are better opportunities than CNA.

High-Quality Stocks for All Market Conditions

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

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 Kadant (+351% 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

Recent Quotes

View More
Symbol Price Change (%)
AMZN  234.03
+0.00 (0.00%)
AAPL  283.32
+0.00 (0.00%)
AMD  219.76
+0.00 (0.00%)
BAC  53.24
+0.00 (0.00%)
GOOG  315.12
+0.00 (0.00%)
META  641.15
+0.00 (0.00%)
MSFT  486.74
+0.00 (0.00%)
NVDA  180.00
+0.00 (0.00%)
ORCL  200.94
+0.00 (0.00%)
TSLA  430.22
+0.00 (0.00%)
Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the Privacy Policy and Terms Of Service.


 

IntelligentValue Home
Close Window

DISCLAIMER

All content herein is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor should it be interpreted as a recommendation to buy, hold or sell (short or otherwise) any security.  All opinions, analyses, and information included herein are based on sources believed to be reliable, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. We undertake no obligation to update such opinions, analysis or information. You should independently verify all information contained on this website. Some information is based on analysis of past performance or hypothetical performance results, which have inherent limitations. We make no representation that any particular equity or strategy will or is likely to achieve profits or losses similar to those shown. Shareholders, employees, writers, contractors, and affiliates associated with ETFOptimize.com may have ownership positions in the securities that are mentioned. If you are not sure if ETFs, algorithmic investing, or a particular investment is right for you, you are urged to consult with a Registered Investment Advisor (RIA). Neither this website nor anyone associated with producing its content are Registered Investment Advisors, and no attempt is made herein to substitute for personalized, professional investment advice. Neither ETFOptimize.com, Global Alpha Investments, Inc., nor its employees, service providers, associates, or affiliates are responsible for any investment losses you may incur as a result of using the information provided herein. Remember that past investment returns may not be indicative of future returns.

Copyright © 1998-2017 ETFOptimize.com, a publication of Optimized Investments, Inc. All rights reserved.