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 are three mid-cap stocks to swipe left on and some alternatives you should look into instead.

The New York Times (NYT)

Market Cap: $11.65 billion

Founded in 1851, The New York Times (NYSE: NYT) is an American media organization known for its influential newspaper and expansive digital journalism platforms.

Why Do We Think NYT Will Underperform?

1. Demand for its offerings was relatively low as its number of subscribers has underwhelmed
2. Subpar operating margin of 14.2% constrains its ability to invest in process improvements or effectively respond to new competitive threats
3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

The New York Times is trading at $71.66 per share, or 27.3x forward P/E. To fully understand why you should be careful with NYT, check out our full research report (it’s free).

Five Below (FIVE)

Market Cap: $10.89 billion

Often facilitating a treasure hunt shopping experience, Five Below (NASDAQ: FIVE) is an American discount retailer that sells a variety of products from mobile phone cases to candy to sports equipment for largely $5 or less.

Why Does FIVE Fall Short?

1. Subscale operations are evident in its revenue base of $4.43 billion, meaning it has fewer distribution channels than its larger rivals
2. Gross margin of 35.4% is an output of its commoditized inventory
3. Underwhelming 10.4% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its decreasing returns suggest its historical profit centers are aging

At $197.41 per share, Five Below trades at 31.4x forward P/E. If you’re considering FIVE for your portfolio, see our FREE research report to learn more.

Builders FirstSource (BLDR)

Market Cap: $13.98 billion

Headquartered in Irving, TX, Builders FirstSource (NYSE: BLDR) is a construction materials manufacturer that offers a variety of lumber and lumber-related building products.

Why Does BLDR Give Us Pause?

1. Annual sales declines of 4.9% for the past two years show its products and services struggled to connect with the market during this cycle
2. Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
3. Diminishing returns on capital suggest its earlier profit pools are drying up

Builders FirstSource’s stock price of $126.43 implies a valuation ratio of 20.5x forward P/E. Check out our free in-depth research report to learn more about why BLDR doesn’t pass our bar.

High-Quality Stocks for All Market Conditions

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in 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 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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.