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 a long growth runway and two best left ignored.

Two Mid-Cap Stocks to Sell:

Yum China (YUMC)

Market Cap: $16.34 billion

One of China’s largest restaurant companies, Yum China (NYSE: YUMC) is an independent entity spun off from Yum! Brands in 2016.

Why Are We Wary of YUMC?

1. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new diners into its restaurants
2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 5.1%
3. Lacking pricing power results in an inferior gross margin of 20.1% that must be offset by turning more tables

Yum China’s stock price of $44.51 implies a valuation ratio of 16.3x forward P/E. To fully understand why you should be careful with YUMC, check out our full research report (it’s free).

Graco (GGG)

Market Cap: $14.42 billion

Founded in 1926, Graco (NYSE: GGG) is an industrial company specializing in the development and manufacturing of fluid-handling systems and products.

Why Does GGG Fall Short?

1. Sales stagnated over the last two years and signal the need for new growth strategies
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. Waning returns on capital imply its previous profit engines are losing steam

Graco is trading at $87.02 per share, or 28.3x forward P/E. Dive into our free research report to see why there are better opportunities than GGG.

One Mid-Cap Stock to Buy:

Interactive Brokers (IBKR)

Market Cap: $27.51 billion

Founded in 1977 and known for its sophisticated trading technology and global reach across 150+ exchanges in 34 countries, Interactive Brokers (NASDAQ: IBKR) is a global electronic broker that provides low-cost trading and investment services across stocks, options, futures, forex, bonds, and other financial instruments.

Why Do We Love IBKR?

1. Impressive 22.7% annual revenue growth over the last five years indicates it’s winning market share this cycle
2. Incremental sales over the last five years have been highly profitable as its earnings per share increased by 27.4% annually, topping its revenue gains
3. Annual tangible book value per share growth of 20.2% over the past two years was outstanding, reflecting strong capital accumulation this cycle

At $61.85 per share, Interactive Brokers trades at 31.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out 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-micro-cap company Tecnoglass (+1,754% 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

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