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1 Mid-Cap Stock for Long-Term Investors and 2 We Find Risky

ZM Cover Image

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. Keeping that in mind, here is one mid-cap stock with huge upside potential and two that could be down big.

Two Mid-Cap Stocks to Sell:

Zoom (ZM)

Market Cap: $26.72 billion

Once the verb that defined remote work during the pandemic ("let's Zoom later"), Zoom (NASDAQ: ZM) provides a cloud-based platform for video meetings, phone calls, team chat, and collaboration tools that helps businesses and individuals connect virtually.

Why Do We Avoid ZM?

  1. Average billings growth of 3.9% over the last year was subpar, suggesting it struggled to push its software and might have to lower prices to stimulate demand
  2. Competitive market dynamics make it difficult to retain customers, leading to a weak 98% net revenue retention rate
  3. Anticipated sales growth of 3.6% for the next year implies demand will be shaky

At $90.53 per share, Zoom trades at 5.4x forward price-to-sales. If you’re considering ZM for your portfolio, see our FREE research report to learn more.

Reinsurance Group of America (RGA)

Market Cap: $13.34 billion

Operating behind the scenes of the insurance industry since 1973, Reinsurance Group of America (NYSE: RGA) provides life and health reinsurance services to insurance companies, helping them manage risk and meet regulatory requirements.

Why Do We Think Twice About RGA?

  1. Net premiums earned only expanded by 7.3% annually over the last two years, trailing its insurance peers as its scale limited incremental business
  2. Annual earnings per share growth of 5.1% underperformed its revenue over the last two years, showing its incremental sales were less profitable
  3. Book value per share is projected to decrease by 13.7% over the next 12 months as capital generation weakens

Reinsurance Group of America’s stock price of $202.86 implies a valuation ratio of 1x forward P/B. Read our free research report to see why you should think twice about including RGA in your portfolio.

One Mid-Cap Stock to Buy:

FTAI Aviation (FTAI)

Market Cap: $18.68 billion

With a focus on the CFM56 engine that powers Boeing and Airbus’s planes, FTAI Aviation (NASDAQ: FTAI) sells, leases, maintains, and repairs aircraft engines.

Why Should You Buy FTAI?

  1. Impressive 43.9% annual revenue growth over the last two years indicates it’s winning market share this cycle
  2. Incremental sales over the last two years have been highly profitable as its earnings per share increased by 82.4% annually, topping its revenue gains
  3. Cash burn has become less severe over the last five years, showing the company is making some progress toward financial sustainability

FTAI Aviation is trading at $182.13 per share, or 30x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.

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 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-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.

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