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3 Mid-Cap Stocks We Approach with Caution

TSCO Cover Image

Many investors pay attention to mid-cap stocks because they have established business models and expansive market opportunities. However, their paths to becoming $100 billion corporations are ripe with competition, ranging from giants with vast resources to agile upstarts eager to disrupt the status quo.

This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. 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: $26.4 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 Does TSCO Fall Short?

  1. Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 3% for the last three years
  2. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
  3. Gross margin of 36.3% is below its competitors, leaving less money for marketing and promotions

Tractor Supply is trading at $50.59 per share, or 23.2x forward P/E. Check out our free in-depth research report to learn more about why TSCO doesn’t pass our bar.

Hasbro (HAS)

Market Cap: $13.29 billion

Credited with the creation of toys such as Mr. Potato Head and the Rubik’s Cube, Hasbro (NASDAQ: HAS) is a global entertainment company offering a diverse range of toys, games, and multimedia experiences for children and families.

Why Should You Dump HAS?

  1. Sales tumbled by 3% annually over the last five years, showing consumer trends are working against its favor
  2. Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 8.1% annually
  3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

Hasbro’s stock price of $95.16 implies a valuation ratio of 16.8x forward P/E. Read our free research report to see why you should think twice about including HAS in your portfolio.

Bunge Global (BG)

Market Cap: $22.58 billion

With origins dating back to 1818 and operations spanning both hemispheres to balance seasonal harvests, Bunge Global (NYSE: BG) is an agribusiness and food company that processes oilseeds, grains, and other agricultural commodities into vegetable oils, protein meals, flours, and specialty ingredients.

Why Does BG Give Us Pause?

  1. Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 1.5% for the last three years
  2. Performance over the past three years shows its incremental sales were much less profitable, as its earnings per share fell by 19.1% annually
  3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

At $117.64 per share, Bunge Global trades at 14.1x forward P/E. To fully understand why you should be careful with BG, check out our full research report (it’s free).

Stocks We Like More

ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.

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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.

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