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.
These dynamics can rattle even the most seasoned professionals, which is why we started StockStory - to help you separate the good companies from the bad. That said, here is one mid-cap stock with huge upside potential and two best left ignored.
Two Mid-Cap Stocks to Sell:
Equitable Holdings (EQH)
Market Cap: $12.73 billion
Tracing its roots back to 1859 as one of America's oldest financial institutions, Equitable Holdings (NYSE: EQH) provides retirement planning, asset management, and life insurance products through its two main franchises, Equitable and AllianceBernstein.
Why Should You Dump EQH?
- Annual sales growth of 2.4% over the last five years lagged behind its insurance peers as its large revenue base made it difficult to generate incremental demand
- Policy losses and capital returns have eroded its book value per share this cycle as its book value per share declined by 162% annually over the last five years
- Debt-to-equity ratio of 8.7× shows the firm has taken on excessive debt, leaving little room for error
Equitable Holdings is trading at $44.43 per share, or 5.9x forward P/E. To fully understand why you should be careful with EQH, check out our full research report (it’s free for active Edge members).
Regions Financial (RF)
Market Cap: $22.28 billion
Tracing its roots back to 1971 and operating in a region known as the "heart of Dixie," Regions Financial (NYSE: RF) is a financial holding company that provides banking services, wealth management, and specialty financial solutions across the South, Midwest, and Texas.
Why Does RF Fall Short?
- Net interest income trends were unexciting over the last five years as its 5.4% annual growth was below the typical banking firm
- 41 basis point (100 basis points = 1 percentage point) decline in its net interest margin over the last two years reflects the firm’s willingness to accept lower profitability to defend its market position
- Flat earnings per share over the last two years lagged its peers
At $25.51 per share, Regions Financial trades at 1.2x forward P/B. If you’re considering RF for your portfolio, see our FREE research report to learn more.
One Mid-Cap Stock to Buy:
RBC Bearings (RBC)
Market Cap: $13.85 billion
With a Guinness World Record for engineering the largest spherical plain bearing, RBC Bearings (NYSE: RBC) is a manufacturer of bearings and related components for the aerospace & defense, industrial, and transportation industries.
Why Should You Buy RBC?
- Impressive 21% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Earnings per share have massively outperformed its peers over the last five years, increasing by 19.7% annually
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
RBC Bearings’s stock price of $439.99 implies a valuation ratio of 35x 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 Comfort Systems (+782% 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.
