3 Mid-Cap Stocks with Questionable Fundamentals

August 19, 2025 at 00:37 AM EDT

ENTG 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.

Entegris (ENTG)

Market Cap: $11.89 billion

With fabs representing the company’s largest customer type, Entegris (NASDAQ: ENTG) supplies products that purify, protect, and generally ensure the integrity of raw materials needed for advanced semiconductor manufacturing.

Why Do We Avoid ENTG?

Annual sales declines of 7.5% for the past two years show its products and services struggled to connect with the market during this cycle
Anticipated sales growth of 2% for the next year implies demand will be shaky
Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 6.7 percentage points

Entegris is trading at $80.50 per share, or 24.3x forward P/E. If you’re considering ENTG for your portfolio, see our FREE research report to learn more.

Norwegian Cruise Line (NCLH)

Market Cap: $11.11 billion

With amenities like a full go-kart race track built into its ships, Norwegian Cruise Line (NYSE: NCLH) is a premier global cruise company.

Why Does NCLH Fall Short?

Performance surrounding its passenger cruise days has lagged its peers
Cash burn makes us question whether it can achieve sustainable long-term growth
Short cash runway increases the probability of a capital raise that dilutes existing shareholders

Norwegian Cruise Line’s stock price of $24.59 implies a valuation ratio of 11x forward P/E. Dive into our free research report to see why there are better opportunities than NCLH.

Teledyne (TDY)

Market Cap: $25.16 billion

Playing a role in mapping the ocean floor as we know it today, Teledyne (NYSE: TDY) offers digital imaging and instrumentation products for various industries.

Why Are We Wary of TDY?

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
2.5 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
Below-average returns on capital indicate management struggled to find compelling investment opportunities

At $536.59 per share, Teledyne trades at 23.8x forward P/E. Read our free research report to see why you should think twice about including TDY in your portfolio.

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3 Mid-Cap Stocks with Questionable Fundamentals

Entegris (ENTG)

Norwegian Cruise Line (NCLH)

Teledyne (TDY)

High-Quality Stocks for All Market Conditions

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