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1 Mid-Cap Stock Worth Investigating and 2 We Turn Down

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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.

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 is one mid-cap stock with a long growth runway and two best left ignored.

Two Mid-Cap Stocks to Sell:

Ingersoll Rand (IR)

Market Cap: $31.03 billion

Started with the invention of the steam drill, Ingersoll Rand (NYSE: IR) provides mission-critical air, gas, liquid, and solid flow creation solutions.

Why Does IR Give Us Pause?

  1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
  2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 5.6%
  3. ROIC of 5.6% reflects management’s challenges in identifying attractive investment opportunities

At $77.73 per share, Ingersoll Rand trades at 21.3x forward P/E. Dive into our free research report to see why there are better opportunities than IR.

Hologic (HOLX)

Market Cap: $16.58 billion

As a pioneer in 3D mammography technology that has revolutionized breast cancer detection, Hologic (NASDAQ: HOLX) develops and manufactures diagnostic products, medical imaging systems, and surgical devices focused primarily on women's health and wellness.

Why Do We Think Twice About HOLX?

  1. Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn’t resonate with customers
  2. Free cash flow margin shrank by 20.6 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
  3. Diminishing returns on capital suggest its earlier profit pools are drying up

Hologic is trading at $74.36 per share, or 16.3x forward P/E. Check out our free in-depth research report to learn more about why HOLX doesn’t pass our bar.

One Mid-Cap Stock to Watch:

MACOM (MTSI)

Market Cap: $11.86 billion

Founded in the 1950s as Microwave Associates, a communications supplier to the US Army Signal Corp, today MACOM Technology Solutions (NASDAQ: MTSI) is a provider of analog chips used in optical, wireless, and satellite networks.

Why Are We Positive On MTSI?

  1. Market share has increased this cycle as its 22.1% annual revenue growth over the last two years was exceptional
  2. Superior product capabilities and pricing power are reflected in its premier gross margin of 54.4%
  3. Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 29.1% annually

MACOM’s stock price of $158.96 implies a valuation ratio of 36.9x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

Stocks We Like Even More

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 6 Stocks for this week. 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-small-cap company Exlservice (+354% 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.

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