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.

This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. That said, here is one mid-cap stock with massive growth potential and two that could be down big.

Two Mid-Cap Stocks to Sell:

Williams-Sonoma (WSM)

Market Cap: $19.73 billion

Started in 1956 as a store specializing in French cookware, Williams-Sonoma (NYSE: WSM) is a specialty retailer of higher-end kitchenware, home goods, and furniture.

Why Does WSM Fall Short?

1. Ongoing store closures and lackluster same-store sales indicate sluggish demand and a focus on consolidation
2. Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
3. Free cash flow margin dropped by 5.3 percentage points over the last year, implying the company became more capital intensive as competition picked up

Williams-Sonoma’s stock price of $160.44 implies a valuation ratio of 18.8x forward P/E. Check out our free in-depth research report to learn more about why WSM doesn’t pass our bar.

Clean Harbors (CLH)

Market Cap: $12.13 billion

Established in 1980, Clean Harbors (NYSE: CLH) provides environmental and industrial services like hazardous and non-hazardous waste disposal and emergency spill cleanups.

Why Are We Wary of CLH?

1. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
2. Earnings per share have dipped by 2.5% annually over the past two years, which is concerning because stock prices follow EPS over the long term
3. 5.3 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

At $226.34 per share, Clean Harbors trades at 28.5x forward P/E. Read our free research report to see why you should think twice about including CLH in your portfolio.

One Mid-Cap Stock to Buy:

Texas Roadhouse (TXRH)

Market Cap: $12.8 billion

With locations often featuring Western-inspired decor, Texas Roadhouse (NASDAQ: TXRH) is an American restaurant chain specializing in Southern-style cuisine and steaks.

Why Is TXRH a Good Business?

1. Aggressive strategy of rolling out new restaurants to gobble up whitespace is prudent given its same-store sales growth
2. Customers are lining up to eat at its restaurants as the company’s same-store sales growth averaged 7.9% over the past two years
3. ROIC punches in at 18.7%, illustrating management’s expertise in identifying profitable investments, and its rising returns show it’s making even more lucrative bets

Texas Roadhouse is trading at $193.37 per share, or 27.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 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 Comfort Systems (+782% 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