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3 Mid-Cap Stocks We Steer Clear Of

TSCO 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. Keeping that in mind, here are three mid-cap stocks to swipe left on and some alternatives you should look into instead.

Tractor Supply (TSCO)

Market Cap: $27.16 billion

Started as a mail-order tractor parts business, Tractor Supply (NASDAQ: TSCO) is a retailer of general goods such as agricultural supplies, hardware, and pet food for the rural consumer.

Why Is TSCO Not Exciting?

  1. Sizable revenue base leads to growth challenges as its 4.4% annual revenue increases over the last three years fell short of other consumer retail companies
  2. Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
  3. Gross margin of 36.4% is below its competitors, leaving less money for marketing and promotions

Tractor Supply is trading at $51.41 per share, or 22x forward P/E. Dive into our free research report to see why there are better opportunities than TSCO.

Masco (MAS)

Market Cap: $13.96 billion

Headquartered just outside of Detroit, MI, Masco (NYSE: MAS) designs and manufactures home-building products such as glass shower doors, decorative lighting, bathtubs, and faucets.

Why Is MAS Risky?

  1. 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
  2. Estimated sales growth of 2% for the next 12 months is soft and implies weaker demand
  3. Waning returns on capital imply its previous profit engines are losing steam

At $67.36 per share, Masco trades at 15.7x forward P/E. If you’re considering MAS for your portfolio, see our FREE research report to learn more.

Exact Sciences (EXAS)

Market Cap: $19.31 billion

With a mission to detect cancer earlier when it's more treatable, Exact Sciences (NASDAQ: EXAS) develops and markets cancer screening and diagnostic tests, including its flagship Cologuard stool-based colorectal cancer screening test.

Why Does EXAS Worry Us?

  1. Cash-burning history makes us doubt the long-term viability of its business model
  2. Negative returns on capital show management lost money while trying to expand the business

Exact Sciences’s stock price of $101.37 implies a valuation ratio of 120.5x forward P/E. Check out our free in-depth research report to learn more about why EXAS doesn’t pass our bar.

Stocks We Like More

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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