Mid-cap stocks have the best odds of scaling into $100 billion corporations thanks to their tested business models and large addressable markets. But the many opportunities in front of them attract significant competition, spanning from industry behemoths with seemingly infinite resources to small, nimble players with chips on their shoulders.
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 are three mid-cap stocks to swipe left on and some alternatives you should look into instead.
Manhattan Associates (MANH)
Market Cap: $11.55 billion
Boasting major consumer staples and pharmaceutical companies as clients, Manhattan Associates (NASDAQ: MANH) offers a software-as-service platform that helps customers manage their supply chains.
Why Do We Avoid MANH?
- Offerings struggled to generate meaningful interest as its average billings growth of 3.6% over the last year did not impress
- Estimated sales growth of 1.9% for the next 12 months implies demand will slow from its three-year trend
- Bad unit economics and steep infrastructure costs are reflected in its gross margin of 55.6%, one of the worst among software companies
Manhattan Associates is trading at $189 per share, or 10.9x forward price-to-sales. Read our free research report to see why you should think twice about including MANH in your portfolio.
Pilgrim's Pride (PPC)
Market Cap: $11.26 billion
Offering everything from pre-marinated to frozen chicken, Pilgrim’s Pride (NASDAQ: PPC) produces, processes, and distributes chicken products to retailers and food service customers.
Why Does PPC Give Us Pause?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 4.5% over the last three years was below our standards for the consumer staples sector
- Estimated sales growth of 1.5% for the next 12 months implies demand will slow from its three-year trend
- Commoditized products, bad unit economics, and high competition are reflected in its low gross margin of 10.7%
At $47.49 per share, Pilgrim's Pride trades at 9.5x forward P/E. If you’re considering PPC for your portfolio, see our FREE research report to learn more.
MasTec (MTZ)
Market Cap: $12.38 billion
Involved in the 1996 Olympic Games MasTec (NYSE: MTZ) is an infrastructure construction company that specializes in the telecommunications, energy, and utility industries.
Why Are We Cautious About MTZ?
- Gross margin of 13.2% reflects its high production costs
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 2.8% annually
- Free cash flow margin dropped by 4.4 percentage points over the last five years, implying the company became more capital intensive as competition picked up
MasTec’s stock price of $160.59 implies a valuation ratio of 27.2x forward P/E. Dive into our free research report to see why there are better opportunities than MTZ.
Stocks We Like 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 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.
