Mid-cap stocks often strike the right balance between having proven business models and market opportunities that can support $100 billion corporations. However, they face intense competition from scaled industry giants and can be disrupted by new innovative players vying for a slice of the pie.

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 massive growth potential and two that could be down big.

Two Mid-Cap Stocks to Sell:

Labcorp (LH)

Market Cap: $21.92 billion

With over 600 million tests performed annually and involvement in 90% of FDA-approved drugs in 2023, Labcorp (NYSE: LH) provides laboratory testing services and drug development solutions to doctors, hospitals, pharmaceutical companies, and patients worldwide.

Why Does LH Worry Us?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
2. Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 13.3 percentage points
3. Waning returns on capital imply its previous profit engines are losing steam

Labcorp is trading at $261.88 per share, or 15.9x forward P/E. If you’re considering LH for your portfolio, see our FREE research report to learn more.

Waters Corporation (WAT)

Market Cap: $20.39 billion

Founded in 1958 and pioneering innovations in laboratory analysis for over six decades, Waters (NYSE: WAT) develops and manufactures analytical instruments, software, and consumables for liquid chromatography, mass spectrometry, and thermal analysis used in scientific research and quality testing.

Why Does WAT Fall Short?

1. Flat sales over the last two years suggest it must find different ways to grow during this cycle
2. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
3. Waning returns on capital imply its previous profit engines are losing steam

At $342.63 per share, Waters Corporation trades at 25.9x forward P/E. To fully understand why you should be careful with WAT, check out our full research report (it’s free).

One Mid-Cap Stock to Buy:

EMCOR (EME)

Market Cap: $21.71 billion

Through its network of over 70 subsidiaries, EMCOR (NYSE: EME) provides electrical, mechanical, and building construction and services

Why Are We Backing EME?

1. Impressive 14.8% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Share repurchases over the last two years enabled its annual earnings per share growth of 57.7% to outpace its revenue gains
3. Returns on capital are growing as management capitalizes on its market opportunities

EMCOR’s stock price of $485.03 implies a valuation ratio of 20.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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 Exlservice (+354% 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