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1 Mid-Cap Stock Worth Investigating and 2 We Avoid

SNA Cover Image

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.

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 massive growth potential and two that may have trouble.

Two Mid-Cap Stocks to Sell:

Snap-on (SNA)

Market Cap: $18.79 billion

Founded in 1920, Snap-on (NYSE: SNA) is a global provider of tools, equipment, and diagnostics for various industries such as vehicle repair, aerospace, and the military.

Why Does SNA Fall Short?

  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. Flat earnings per share over the last two years underperformed the sector average
  3. Diminishing returns on capital suggest its earlier profit pools are drying up

At $361.36 per share, Snap-on trades at 18.3x forward P/E. If you’re considering SNA for your portfolio, see our FREE research report to learn more.

TopBuild (BLD)

Market Cap: $13.78 billion

Established in 2015 following a spinoff from Masco Corporation, TopBuild (NYSE: BLD) is a distributor and installer of insulation and other building products.

Why Are We Wary of BLD?

  1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
  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. Earnings growth underperformed the sector average over the last two years as its EPS grew by just 2.5% annually

TopBuild’s stock price of $493.35 implies a valuation ratio of 24.5x forward P/E. Read our free research report to see why you should think twice about including BLD in your portfolio.

One Mid-Cap Stock to Watch:

BWX (BWXT)

Market Cap: $19.92 billion

Contributing components and materials to the famous Manhattan Project in the 1940s, BWX (NYSE: BWXT) is a manufacturer and service provider of nuclear components and fuel for government and commercial industries.

Why Does BWXT Catch Our Eye?

  1. Market share has increased this cycle as its 13% annual revenue growth over the last two years was exceptional
  2. Exciting sales outlook for the upcoming 12 months calls for 15.2% growth, an acceleration from its two-year trend
  3. Free cash flow margin increased by 16.9 percentage points over the last five years, giving the company more capital to invest or return to shareholders

BWX is trading at $219.09 per share, or 53x 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

Check out the high-quality names we’ve flagged in 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 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

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