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1 Mid-Cap Stock with Promising Prospects and 2 That Underwhelm

SFM Cover Image

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. Keeping that in mind, here is one mid-cap stock with massive growth potential and two that could be down big.

Two Mid-Cap Stocks to Sell:

General Mills (GIS)

Market Cap: $27.64 billion

Best known for its portfolio of powerhouse breakfast cereal brands, General Mills (NYSE: GIS) is a packaged foods company that has also made a mark in cereals, baking products, and snacks.

Why Are We Wary of GIS?

  1. Falling unit sales over the past two years suggest it might have to lower prices to stimulate growth
  2. Projected sales decline of 4.2% for the next 12 months points to an even tougher demand environment ahead
  3. Earnings growth underperformed the sector average over the last three years as its EPS grew by just 2.2% annually

General Mills is trading at $51.25 per share, or 13x forward P/E. To fully understand why you should be careful with GIS, check out our full research report (it’s free).

Citizens Financial Group (CFG)

Market Cap: $21.33 billion

Tracing its roots back to 1828 as a community-focused institution, Citizens Financial Group (NYSE: CFG) is a regional bank that provides retail and commercial banking services to individuals, small businesses, and large corporations across 14 states.

Why Does CFG Fall Short?

  1. Muted 4% annual net interest income growth over the last five years shows its demand lagged behind its bank peers
  2. 36.7 basis point (100 basis points = 1 percentage point) decline in its net interest margin over the last two years reflects the company’s willingness to accept lower yields to defend its market position
  3. Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable

Citizens Financial Group’s stock price of $49.49 implies a valuation ratio of 0.9x forward P/B. Dive into our free research report to see why there are better opportunities than CFG.

One Mid-Cap Stock to Watch:

Sprouts (SFM)

Market Cap: $16.09 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 Does SFM Catch Our Eye?

  1. Fast expansion of new stores to reach markets with few or no locations is justified by its same-store sales growth
  2. Comparable store sales rose by 6.6% on average over the past two years, demonstrating its ability to drive increased spending at existing locations
  3. Market share is on track to rise over the next 12 months as its 11.6% projected revenue growth implies demand will accelerate from its six-year trend

At $164.10 per share, Sprouts trades at 33.9x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

When Trump unveiled his aggressive tariff plan in April 2024, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 9 Market-Beating Stocks. 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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