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. Keeping that in mind, here are two mid-cap stocks with massive growth potential and one best left ignored.
One Mid-Cap Stock to Sell:
Paramount (PSKY)
Market Cap: $17.36 billion
Owner of Spongebob Squarepants and formerly known as ViacomCBS, Paramount Global (NASDAQ: PARA) is a major media conglomerate offering television, film production, and digital content across various global platforms.
Why Do We Steer Clear of PSKY?
- Annual revenue declines of 2% over the last two years indicate problems with its market positioning
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 23.5% annually
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Paramount’s stock price of $15.82 implies a valuation ratio of 11.8x forward P/E. If you’re considering PSKY for your portfolio, see our FREE research report to learn more.
Two Mid-Cap Stocks to Watch:
Coherent (COHR)
Market Cap: $14.27 billion
Created through the 2022 rebranding of II-VI Incorporated, a company with roots dating back to 1971, Coherent (NYSE: COHR) develops and manufactures advanced materials, lasers, and optical components for applications ranging from telecommunications to industrial manufacturing.
Why Do We Like COHR?
- Impressive 19.5% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Economies of scale give it more fixed cost leverage than its smaller competitors
- Sales outlook for the upcoming 12 months calls for 8.7% growth, an acceleration from its two-year trend
Coherent is trading at $92 per share, or 20x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
United Therapeutics (UTHR)
Market Cap: $13.98 billion
Founded by a mother seeking treatment for her daughter's pulmonary arterial hypertension, United Therapeutics (NASDAQ: UTHR) develops and commercializes medications for chronic lung diseases and other life-threatening conditions, with a focus on pulmonary hypertension treatments.
Why Is UTHR a Top Pick?
- Market share has increased this cycle as its 20.7% annual revenue growth over the last two years was exceptional
- Robust free cash flow margin of 35.5% gives it many options for capital deployment, and its growing cash flow gives it even more resources to deploy
- Returns on capital are climbing as management makes more lucrative bets
At $311 per share, United Therapeutics trades at 9.7x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
Trump’s April 2025 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 6 Stocks for this week. 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 Comfort Systems (+782% 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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