ETFOptimize | High-performance ETF-based Investment Strategies

Quantitative strategies, Wall Street-caliber research, and insightful market analysis since 1998.


ETFOptimize | HOME
Close Window

3 Mid-Cap Stocks Facing Headwinds

FFIV 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.

F5 (FFIV)

Market Cap: $15.48 billion

Initially started as a hardware appliances company in the late 1990s, F5 (NASDAQ: FFIV) makes software that helps large enterprises ensure their web applications are always available by distributing network traffic and protecting them from cyberattacks.

Why Is FFIV Not Exciting?

  1. 3.5% annual revenue growth over the last three years was slower than its software peers
  2. ARR has dropped by 8.3% over the last year, suggesting it lost long-term deals and renewals
  3. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 3.6%

F5 is trading at $267 per share, or 5.2x forward price-to-sales. To fully understand why you should be careful with FFIV, check out our full research report (it’s free).

McCormick (MKC)

Market Cap: $20.2 billion

The classic red Heinz ketchup bottle’s competitor, McCormick (NYSE: MKC) sells food-flavoring products like condiments, spices, and seasoning mixes.

Why Does MKC Worry Us?

  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. Anticipated sales growth of 2.2% for the next year implies demand will be shaky
  3. 5.4 percentage point decline in its free cash flow margin over the last year reflects the company’s increased investments to defend its market position

At $75.30 per share, McCormick trades at 24.1x forward P/E. Dive into our free research report to see why there are better opportunities than MKC.

NetApp (NTAP)

Market Cap: $18.94 billion

Founded in 1992 as a pioneer in networked storage technology, NetApp (NASDAQ: NTAP) provides data storage and management solutions that help organizations store, protect, and optimize their data across on-premises data centers and public clouds.

Why Do We Think NTAP Will Underperform?

  1. Sales were flat over the last two years, indicating it’s failed to expand this cycle
  2. Offerings struggled to generate interest as its billings were flat over the past two years
  3. Anticipated sales growth of 3.8% for the next year implies demand will be shaky

NetApp’s stock price of $93.09 implies a valuation ratio of 12x forward P/E. If you’re considering NTAP for your portfolio, see our FREE research report to learn more.

Stocks That Overcame Trump’s 2018 Tariffs

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 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 Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.

Recent Quotes

View More
Symbol Price Change (%)
AMZN  232.52
+0.14 (0.06%)
AAPL  273.40
-0.41 (-0.15%)
AMD  214.99
-0.05 (-0.02%)
BAC  56.17
-0.08 (-0.14%)
GOOG  314.96
-0.71 (-0.22%)
META  663.29
-4.26 (-0.64%)
MSFT  487.71
-0.31 (-0.06%)
NVDA  190.53
+1.92 (1.02%)
ORCL  197.99
+0.50 (0.25%)
TSLA  475.19
-10.21 (-2.10%)
Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the Privacy Policy and Terms Of Service.


 

IntelligentValue Home
Close Window

DISCLAIMER

All content herein is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor should it be interpreted as a recommendation to buy, hold or sell (short or otherwise) any security.  All opinions, analyses, and information included herein are based on sources believed to be reliable, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. We undertake no obligation to update such opinions, analysis or information. You should independently verify all information contained on this website. Some information is based on analysis of past performance or hypothetical performance results, which have inherent limitations. We make no representation that any particular equity or strategy will or is likely to achieve profits or losses similar to those shown. Shareholders, employees, writers, contractors, and affiliates associated with ETFOptimize.com may have ownership positions in the securities that are mentioned. If you are not sure if ETFs, algorithmic investing, or a particular investment is right for you, you are urged to consult with a Registered Investment Advisor (RIA). Neither this website nor anyone associated with producing its content are Registered Investment Advisors, and no attempt is made herein to substitute for personalized, professional investment advice. Neither ETFOptimize.com, Global Alpha Investments, Inc., nor its employees, service providers, associates, or affiliates are responsible for any investment losses you may incur as a result of using the information provided herein. Remember that past investment returns may not be indicative of future returns.

Copyright © 1998-2017 ETFOptimize.com, a publication of Optimized Investments, Inc. All rights reserved.