Many investors pay attention to mid-cap stocks because they have established business models and expansive market opportunities. However, their paths to becoming $100 billion corporations are ripe with competition, ranging from giants with vast resources to agile upstarts eager to disrupt the status quo.

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 two mid-cap stocks with huge upside potential and one that could be down big.

One Mid-Cap Stock to Sell:

Restaurant Brands (QSR)

Market Cap: $23.11 billion

Formed through a strategic merger, Restaurant Brands International (NYSE: QSR) is a multinational corporation that owns three iconic fast-food chains: Burger King, Tim Hortons, and Popeyes.

Why Are We Cautious About QSR?

1. Estimated sales growth of 4.4% for the next 12 months implies demand will slow from its six-year trend
2. Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 4.5 percentage points
3. High net-debt-to-EBITDA ratio of 5× could force the company to raise capital at unfavorable terms if market conditions deteriorate

At $70.48 per share, Restaurant Brands trades at 17.3x forward P/E. Read our free research report to see why you should think twice about including QSR in your portfolio.

Two Mid-Cap Stocks to Buy:

Pure Storage (PSTG)

Market Cap: $25.76 billion

Founded in 2009 as a pioneer in enterprise all-flash storage technology, Pure Storage (NYSE: PSTG) provides all-flash data storage hardware and software that helps organizations manage their data more efficiently across on-premises and cloud environments.

Why Will PSTG Outperform?

1. ARR trends over the past two years show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
2. Incremental sales over the last five years have been highly profitable as its earnings per share increased by 33.1% annually, topping its revenue gains
3. PSTG is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its rising cash conversion increases its margin of safety

Pure Storage’s stock price of $79.19 implies a valuation ratio of 35x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

Synchrony Financial (SYF)

Market Cap: $26.88 billion

Powering over 73 million active accounts and partnerships with major brands like Amazon, PayPal, and Lowe's, Synchrony Financial (NYSE: SYF) provides credit cards, installment loans, and banking products through partnerships with retailers, healthcare providers, and digital platforms.

Why Is SYF a Good Business?

1. Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
2. Annual tangible book value per share growth of 20.8% over the last two years was superb and indicates its capital strength increased during this cycle
3. Market-beating return on equity illustrates that management has a knack for investing in profitable ventures

Synchrony Financial is trading at $74.71 per share, or 7.9x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .

Stocks We Like Even More

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 9 Market-Beating Stocks. 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 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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