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 three mid-cap stocks to swipe left on and some alternatives you should look into instead.
Charter (CHTR)
Market Cap: $27.57 billion
Operating as Spectrum, Charter (NASDAQ: CHTR) is a leading telecommunications company offering cable television, high-speed internet, and voice services across the United States.
Why Does CHTR Fall Short?
- Number of internet subscribers has disappointed over the past two years, indicating weak demand for its offerings
- Estimated sales for the next 12 months are flat and imply a softer demand environment
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
Charter’s stock price of $212.04 implies a valuation ratio of 5x forward P/E. Check out our free in-depth research report to learn more about why CHTR doesn’t pass our bar.
Service International (SCI)
Market Cap: $11.25 billion
Founded in 1962, Service International (NYSE: SCI) is a leading provider of death care products and services in North America.
Why Do We Steer Clear of SCI?
- Performance surrounding its funeral services performed has lagged its peers
- Anticipated sales growth of 3% for the next year implies demand will be shaky
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
At $80.22 per share, Service International trades at 19.6x forward P/E. If you’re considering SCI for your portfolio, see our FREE research report to learn more.
AeroVironment (AVAV)
Market Cap: $16.07 billion
Focused on the future of autonomous military combat, AeroVironment (NASDAQ: AVAV) specializes in advanced unmanned aircraft systems and electric vehicle charging solutions.
Why Is AVAV Not Exciting?
- Costs have risen faster than its revenue over the last five years, causing its operating margin to decline by 9.4 percentage points
- Free cash flow margin dropped by 25.6 percentage points over the last five years, implying the company became more capital intensive as competition picked up
- Negative returns on capital show that some of its growth strategies have backfired
AeroVironment is trading at $322 per share, or 76.8x forward P/E. Dive into our free research report to see why there are better opportunities than AVAV.
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
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