Large trillion-dollar companies are tightening their grip on the market, often by acquiring smaller rivals. This trend will likely pick up with new regulatory leadership, but a few mid-sized businesses will continue prospering by anchoring themselves in unique market segments.
Digging up these buried treasures isn’t easy, and that’s exactly why we created StockStory. That said, here are three of our favorite mid-cap stocks that could amplify your portfolio’s returns.
Sprouts (SFM)
Market Cap: $15.99 billion
Playing on the secular trend of healthier living, Sprouts Farmers Market (NASDAQ: SFM) is a grocery store chain emphasizing natural and organic products.
Why Do We Watch SFM?
- Aggressive strategy of rolling out new stores to gobble up whitespace is prudent given its same-store sales growth
- Comparable store sales rose by 6.6% on average over the past two years, demonstrating its ability to drive increased spending at existing locations
- Free cash flow margin grew by 2.1 percentage points over the last year, giving the company more chips to play with
Sprouts is trading at $163 per share, or 33.6x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Natera (NTRA)
Market Cap: $20.94 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 Is NTRA a Good Business?
- Products are reaching more customers as its tests processed averaged 23.1% growth over the past two years
- Adjusted operating profits and efficiency rose over the last two years as it benefited from some fixed cost leverage
- Free cash flow profile has moved into positive territory over the last five years, showing the company has crossed a key inflection point
Natera’s stock price of $153.89 implies a valuation ratio of 10.1x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Booz Allen Hamilton (BAH)
Market Cap: $13.39 billion
With roots dating back to 1914 and deep ties to nearly all U.S. cabinet-level departments, Booz Allen Hamilton (NYSE: BAH) provides management consulting, technology services, and cybersecurity solutions primarily to U.S. government agencies and military branches.
Why Are We Backing BAH?
- Market share has increased this cycle as its 13.7% annual revenue growth over the last two years was exceptional
- Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 12.9% over the past two years
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 14.9% exceeded its revenue gains over the last five years
At $108.40 per share, Booz Allen Hamilton trades at 15.7x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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.
