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. Keeping that in mind, here is one mid-cap stock with huge upside potential and two that may have trouble.

Two Mid-Cap Stocks to Sell:

Entegris (ENTG)

Market Cap: $15.23 billion

With fabs representing the company’s largest customer type, Entegris (NASDAQ: ENTG) supplies products that purify, protect, and generally ensure the integrity of raw materials needed for advanced semiconductor manufacturing.

Why Does ENTG Fall Short?

1. Sales were flat over the last two years, indicating it’s failed to expand this cycle
2. Efficiency has decreased over the last five years as its operating margin fell by 4.8 percentage points
3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 7.2 percentage points

Entegris’s stock price of $100.80 implies a valuation ratio of 27.9x forward price-to-earnings. To fully understand why you should be careful with ENTG, check out our full research report (it’s free).

HP (HPQ)

Market Cap: $27.25 billion

Born from the legendary Silicon Valley garage startup founded by Bill Hewlett and Dave Packard in 1939, HP (NYSE: HPQ) designs and sells personal computers, printers, and related technology products and services to consumers, businesses, and enterprises worldwide.

Why Are We Out on HPQ?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 1.7% annually over the last five years
2. Projected sales growth of 3.5% for the next 12 months suggests sluggish demand
3. Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term

HP is trading at $28.96 per share, or 7.8x forward price-to-earnings. Read our free research report to see why you should think twice about including HPQ in your portfolio.

One Mid-Cap Stock to Buy:

Natera (NTRA)

Market Cap: $20.18 billion

Founded in 2003 as Gene Security Network before rebranding in 2012, Natera (NASDAQ: NTRA) develops and commercializes genetic tests for prenatal screening, cancer detection, and organ transplant monitoring using its proprietary cell-free DNA technology.

Why Should You Buy NTRA?

1. Tests Processed averaged 24.2% growth over the past two years and imply healthy demand for its products
2. Earnings per share grew by 19.4% annually over the last five years, massively outpacing its peers
3. Free cash flow profile has moved into positive territory over the last five years, indicating the company has passed a significant test

At $148.88 per share, Natera trades at 10.2x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

The elections are now behind us. With rates dropping and inflation cooling, many analysts expect a breakout market - and we’re zeroing in on the stocks that could benefit immensely.

Take advantage of the rebound by checking 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 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free.