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. Keeping that in mind, here is one mid-cap stock with massive growth potential and two that could be down big.
Two Mid-Cap Stocks to Sell:
General Mills (GIS)
Market Cap: $27.64 billion
Best known for its portfolio of powerhouse breakfast cereal brands, General Mills (NYSE: GIS) is a packaged foods company that has also made a mark in cereals, baking products, and snacks.
Why Are We Wary of GIS?
- Falling unit sales over the past two years suggest it might have to lower prices to stimulate growth
- Projected sales decline of 4.2% for the next 12 months points to an even tougher demand environment ahead
- Earnings growth underperformed the sector average over the last three years as its EPS grew by just 2.2% annually
General Mills is trading at $51.25 per share, or 13x forward P/E. To fully understand why you should be careful with GIS, check out our full research report (it’s free).
Citizens Financial Group (CFG)
Market Cap: $21.33 billion
Tracing its roots back to 1828 as a community-focused institution, Citizens Financial Group (NYSE: CFG) is a regional bank that provides retail and commercial banking services to individuals, small businesses, and large corporations across 14 states.
Why Does CFG Fall Short?
- Muted 4% annual net interest income growth over the last five years shows its demand lagged behind its bank peers
- 36.7 basis point (100 basis points = 1 percentage point) decline in its net interest margin over the last two years reflects the company’s willingness to accept lower yields to defend its market position
- Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable
Citizens Financial Group’s stock price of $49.49 implies a valuation ratio of 0.9x forward P/B. Dive into our free research report to see why there are better opportunities than CFG.
One Mid-Cap Stock to Watch:
Sprouts (SFM)
Market Cap: $16.09 billion
Playing on the secular trend of healthier living, Sprouts Farmers Market (NASDAQ: SFM) is a grocery store chain emphasizing natural and organic products.
Why Does SFM Catch Our Eye?
- Fast expansion of new stores to reach markets with few or no locations is justified by its same-store sales growth
- Comparable store sales rose by 6.6% on average over the past two years, demonstrating its ability to drive increased spending at existing locations
- Market share is on track to rise over the next 12 months as its 11.6% projected revenue growth implies demand will accelerate from its six-year trend
At $164.10 per share, Sprouts trades at 33.9x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2024, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 9 Market-Beating Stocks. 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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