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.
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. Keeping that in mind, here is one mid-cap stock with a long growth runway and two best left ignored.
Two Mid-Cap Stocks to Sell:
Molson Coors (TAP)
Market Cap: $10.29 billion
Sporting an impressive roster of iconic beer brands, Molson Coors (NYSE: TAP) is a global brewing giant with a rich history dating back more than two centuries.
Why Does TAP Fall Short?
- Shrinking unit sales over the past two years suggest it might have to lower prices to stimulate growth
- Sales are projected to remain flat over the next 12 months as demand decelerates from its three-year trend
- ROIC of 3.7% reflects management’s challenges in identifying attractive investment opportunities
Molson Coors’s stock price of $50.80 implies a valuation ratio of 7.9x forward P/E. Dive into our free research report to see why there are better opportunities than TAP.
Fidelity National Financial (FNF)
Market Cap: $15.5 billion
Issuing more title insurance policies than any other company in the United States, Fidelity National Financial (NYSE: FNF) provides title insurance and escrow services for real estate transactions while also offering annuities and life insurance through its F&G subsidiary.
Why Does FNF Give Us Pause?
- Net premiums earned tumbled by 6.1% annually over the last four years, showing market trends are working against its favor during this cycle
- Efficiency has decreased over the last four years as its pre-tax profit margin fell by 9.9 percentage points
- Performance over the past two years shows its incremental sales were less profitable, as its 1.2% annual earnings per share growth trailed its revenue gains
At $56.43 per share, Fidelity National Financial trades at 1.6x forward P/B. To fully understand why you should be careful with FNF, check out our full research report (it’s free).
One Mid-Cap Stock to Watch:
BioMarin Pharmaceutical (BMRN)
Market Cap: $11.46 billion
Pioneering treatments for conditions that often had no previous therapeutic options, BioMarin Pharmaceutical (NASDAQ: BMRN) develops and commercializes therapies that address the root causes of rare genetic disorders, particularly those affecting children.
Why Are We Positive On BMRN?
- Annual revenue growth of 16.5% over the past two years was outstanding, reflecting market share gains this cycle
- Performance over the past five years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 22.8% outpaced its revenue gains
- Free cash flow margin expanded by 14.9 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
BioMarin Pharmaceutical is trading at $60.42 per share, or 13.4x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
Trump’s April 2024 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 5 Growth Stocks for this month. 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-micro-cap company Tecnoglass (+1,754% 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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