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.

These dynamics can rattle even the most seasoned professionals, which is why we started StockStory - to help you separate the good companies from the bad. That said, here is one mid-cap stock with huge upside potential and two that may have trouble.

Two Mid-Cap Stocks to Sell:

Dover (DOV)

Market Cap: $23.35 billion

A company that manufactured critical equipment for the United States military during World War II, Dover (NYSE:DOV) manufactures engineered components and specialized equipment for numerous industries.

Why Do We Pass on DOV?

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 lagged its peers over the last two years as they only grew by 1.8% annually

3. 3.3 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

Dover’s stock price of $170.60 implies a valuation ratio of 17.9x forward price-to-earnings. To fully understand why you should be careful with DOV, check out our full research report (it’s free) .

CDW (CDW)

Market Cap: $20.9 billion

Serving as a crucial bridge between technology manufacturers and end users since 1984, CDW (NASDAQ:CDW) is a multi-brand provider of information technology solutions that helps businesses and public sector organizations select, implement, and manage hardware, software, and IT services.

Why Is CDW Risky?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 6% annually over the last two years

2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 1.7%

3. Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term

CDW is trading at $158.61 per share, or 15.8x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than CDW .

One Mid-Cap Stock to Buy:

Deckers (DECK)

Market Cap: $16.57 billion

Established in 1973, Deckers (NYSE:DECK) is a footwear and apparel conglomerate with a portfolio of lifestyle and performance brands.

Why Will DECK Outperform?

1. Annual revenue growth of 18% over the last five years beat the sector average and underscores the popularity of its brand

2. Free cash flow margin is expected to increase by 2.8 percentage points next year, suggesting the company will have more capital to invest or return to shareholders

3. Improving returns on capital reflect management’s ability to monetize investments