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3 Mid-Cap Stocks That Fall Short

MANH Cover Image

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 three mid-cap stocks to swipe left on and some alternatives you should look into instead.

Manhattan Associates (MANH)

Market Cap: $10.64 billion

Built on a "versionless" cloud architecture that delivers quarterly updates to all customers, Manhattan Associates (NASDAQ: MANH) develops cloud-based software that helps retailers, wholesalers, and manufacturers manage their supply chains, inventory, and omnichannel operations.

Why Is MANH Not Exciting?

  1. Customers had second thoughts about committing to its platform over the last year as its average billings growth of 5% underwhelmed
  2. Estimated sales growth of 5% for the next 12 months implies demand will slow from its two-year trend
  3. Gross margin of 56.5% reflects its high servicing costs

Manhattan Associates’s stock price of $176.62 implies a valuation ratio of 9.6x forward price-to-sales. If you’re considering MANH for your portfolio, see our FREE research report to learn more.

Dover (DOV)

Market Cap: $25.36 billion

A company that manufactured critical equipment for the United States military during World War II, Dover (NYSE: DOV) manufactures engineered components and specialized equipment for numerous industries.

Why Does DOV Fall Short?

  1. 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
  2. Earnings growth underperformed the sector average over the last two years as its EPS grew by just 4.7% annually
  3. Diminishing returns on capital suggest its earlier profit pools are drying up

At $184.90 per share, Dover trades at 17.9x forward P/E. To fully understand why you should be careful with DOV, check out our full research report (it’s free for active Edge members).

Crown Holdings (CCK)

Market Cap: $11.11 billion

Formerly Crown Cork & Seal, Crown Holdings (NYSE: CCK) produces packaging products for consumer marketing companies, including food, beverage, household, and industrial products.

Why Are We Hesitant About CCK?

  1. Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track
  2. Anticipated sales growth of 3.1% for the next year implies demand will be shaky
  3. Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 20.5%

Crown Holdings is trading at $97.40 per share, or 12x forward P/E. Check out our free in-depth research report to learn more about why CCK doesn’t pass our bar.

Stocks We Like 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 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-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

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