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.

Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. That said, here is one mid-cap stock with a long growth runway and two best left ignored.

Two Mid-Cap Stocks to Sell:

Tyson Foods (TSN)

Market Cap: $21.41 billion

Started as a simple trucking business, Tyson Foods (NYSE: TSN) is one of the world’s largest producers of chicken, beef, and pork.

Why Should You Dump TSN?

1. Scale is a double-edged sword because it limits the company's growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 2.7% for the last three years
2. Gross margin of 6.6% is an output of its commoditized products
3. Falling earnings per share over the last three years has some investors worried as stock prices ultimately follow EPS over the long term

Tyson Foods’s stock price of $59.99 implies a valuation ratio of 16.4x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than TSN.

TransUnion (TRU)

Market Cap: $15.92 billion

One of the three major credit bureaus in the United States alongside Equifax and Experian, TransUnion (NYSE: TRU) is a global information and insights company that provides credit reports, fraud prevention tools, and data analytics to help businesses make decisions and consumers manage their financial health.

Why Do We Think Twice About TRU?

1. Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 2 percentage points
2. Free cash flow margin shrank by 10.1 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
3. Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its shrinking returns suggest its past profit sources are losing steam

TransUnion is trading at $81.11 per share, or 19.4x forward price-to-earnings. If you’re considering TRU for your portfolio, see our FREE research report to learn more.

One Mid-Cap Stock to Watch:

Lennox (LII)

Market Cap: $18.85 billion

Based in Texas and founded over a century ago, Lennox (NYSE: LII) is a climate control solutions company offering heating, ventilation, air conditioning, and refrigeration (HVACR) goods.

Why Are We Positive On LII?

1. Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
2. Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 24.3% annually
3. Stellar returns on capital showcase management’s ability to surface highly profitable business ventures

At $531.90 per share, Lennox trades at 22.3x forward price-to-earnings. Is now the right time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking 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 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 Axon (+711% five-year return). Find your next big winner with StockStory today for free.