2 Mid-Cap Stocks with Promising Prospects and 1 Facing Challenges

September 23, 2025 at 00:34 AM EDT

MTZ 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 two mid-cap stocks with massive growth potential and one that could be down big.

One Mid-Cap Stock to Sell:

MasTec (MTZ)

Market Cap: $16.07 billion

Involved in the 1996 Olympic Games MasTec (NYSE: MTZ) is an infrastructure construction company that specializes in the telecommunications, energy, and utility industries.

Why Does MTZ Fall Short?

Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 13.1%
Performance over the past five years shows its incremental sales were less profitable, as its 2.1% annual earnings per share growth trailed its revenue gains
Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 3.8 percentage points

MasTec is trading at $209.99 per share, or 31.7x forward P/E. To fully understand why you should be careful with MTZ, check out our full research report (it’s free).

Two Mid-Cap Stocks to Watch:

DexCom (DXCM)

Market Cap: $27.26 billion

Founded in 1999 and receiving its first FDA approval in 2006, DexCom (NASDAQ: DXCM) develops and sells continuous glucose monitoring systems that allow people with diabetes to track their blood sugar levels without repeated finger pricks.

Why Is DXCM a Good Business?

Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 17.8% over the past two years
Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 17.5% annually
Free cash flow margin grew by 8.6 percentage points over the last five years, giving the company more chips to play with

DexCom’s stock price of $69.28 implies a valuation ratio of 29.9x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

Corpay (CPAY)

Market Cap: $21.18 billion

Formerly known as FLEETCOR until its 2024 rebrand, Corpay (NYSE: CPAY) provides specialized payment solutions for businesses to manage vehicle expenses, corporate payments, and lodging costs with enhanced control and reporting capabilities.

Why Do We Like CPAY?

Annual revenue growth of 10.2% over the last five years was above the sector average and underscores its products and services value to customers
Performance over the past five years was aided by share buybacks, which enabled its earnings per share to grow faster than its revenue
Industry-leading 31.1% return on equity demonstrates management’s skill in finding high-return investments

At $299.92 per share, Corpay trades at 13.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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-small-cap company Exlservice (+354% 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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