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1 Mid-Cap Stock with Exciting Potential and 2 to Avoid

CSL 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.

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 huge upside potential and two that could be down big.

Two Mid-Cap Stocks to Sell:

Carlisle (CSL)

Market Cap: $16.48 billion

Originally founded as Carlisle Tire and Rubber Company, Carlisle Companies (NYSE: CSL) is a multi-industry product manufacturer focusing on construction materials and weatherproofing technologies.

Why Does CSL Give Us Pause?

  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. Projected sales growth of 5.1% for the next 12 months suggests sluggish demand
  3. Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 4.8% annually

Carlisle’s stock price of $381.88 implies a valuation ratio of 16.8x forward P/E. Check out our free in-depth research report to learn more about why CSL doesn’t pass our bar.

Zebra (ZBRA)

Market Cap: $14.8 billion

Taking its name from the black and white stripes of barcodes, Zebra Technologies (NASDAQ: ZBRA) provides barcode scanners, mobile computers, RFID systems, and other data capture technologies that help businesses track assets and optimize operations.

Why Should You Sell ZBRA?

  1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
  2. Sales were less profitable over the last two years as its earnings per share fell by 8.2% annually, worse than its revenue declines
  3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

Zebra is trading at $291.03 per share, or 18.8x forward P/E. If you’re considering ZBRA for your portfolio, see our FREE research report to learn more.

One Mid-Cap Stock to Watch:

BioMarin Pharmaceutical (BMRN)

Market Cap: $10.76 billion

Pioneering treatments for conditions that often had no previous therapeutic options, BioMarin Pharmaceutical (NASDAQ: BMRN) develops and commercializes therapies that address the root causes of rare genetic disorders, particularly those affecting children.

Why Are We Positive On BMRN?

  1. Impressive 16.5% annual revenue growth over the last two years indicates it’s winning market share this cycle
  2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 22.8% over the last five years outstripped its revenue performance
  3. Free cash flow margin jumped by 14.9 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

At $56.39 per share, BioMarin Pharmaceutical trades at 12.6x forward P/E. Is now the time to initiate a position? See for yourself in our full 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 Strong Momentum Stocks for this week. 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.

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