
2 Mid-Cap Stocks to Keep an Eye On and 1 to Ignore
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. That said, here are two mid-cap stocks with massive growth potential and one that could be down big.
One Mid-Cap Stock to Sell:
Biogen (BIIB)
Market Cap: $17.85 billion
Founded in 1978 and pioneering treatments for some of medicine's most complex challenges, Biogen (NASDAQ:BIIB) develops and markets therapies for neurological conditions, including multiple sclerosis, Alzheimer's disease, spinal muscular atrophy, and rare diseases.
Why Do We Steer Clear of BIIB?
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Customers postponed purchases of its products and services this cycle as its revenue declined by 7.4% annually over the last five years
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Projected sales decline of 7.3% over the next 12 months indicates demand will continue deteriorating
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Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
Biogen is trading at $122.47 per share, or 7.6x forward P/E. Check out our free in-depth research report to learn more about why BIIB doesn’t pass our bar .
Two Mid-Cap Stocks to Watch:
Comfort Systems (FIX)
Market Cap: $15.32 billion
Formed through the merger of 12 companies, Comfort Systems (NYSE:FIX) provides mechanical and electrical contracting services.
Why Do We Love FIX?
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Average backlog growth of 30.5% over the past two years shows it has a steady sales pipeline that will drive future orders
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Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 68.2% annually
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Returns on capital are growing as management capitalizes on its market opportunities
Comfort Systems’s stock price of $444.72 implies a valuation ratio of 23.3x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free .
Centene (CNC)
Market Cap: $29.75 billion
Serving nearly 1 in 15 Americans through its government healthcare programs, Centene (NYSE:CNC) is a healthcare company that manages government-sponsored health insurance programs like Medicaid and Medicare for low-income and complex-needs populations.
Why Could CNC Be a Winner?
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15.5% annual revenue growth over the last five years surpassed the sector average as its offerings resonated with customers
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Dominant market position is represented by its $169.3 billion in revenue, which gives it negotiating power over membership pricing and reimbursement rates
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Earnings growth has trumped its peers over the last five years as its EPS has compounded at 14.8% annually