
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.
Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. Keeping that in mind, here are two mid-cap stocks with huge upside potential and one that could be down big.
One Mid-Cap Stock to Sell:
Generac (GNRC)
Market Cap: $12.48 billion
With its name deriving from a combination of “generating” and “AC”, Generac (NYSE: GNRC) offers generators and other power products for residential, industrial, and commercial use.
Why Are We Wary of GNRC?
- 2.3% annual revenue growth over the last two years was slower than its industrials peers
- Earnings per share were flat over the last five years while its revenue grew, showing its incremental sales were less profitable
- Waning returns on capital imply its previous profit engines are losing steam
At $209.71 per share, Generac trades at 25.1x forward P/E. Dive into our free research report to see why there are better opportunities than GNRC.
Two Mid-Cap Stocks to Watch:
Pinterest (PINS)
Market Cap: $12.42 billion
Created with the idea of virtually replacing paper catalogues, Pinterest (NYSE: PINS) is an online image and social discovery platform.
Why Are We Fans of PINS?
- Monthly Active Users have grown by 11.4% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
- Additional sales over the last three years increased its profitability as the 38.2% annual growth in its earnings per share outpaced its revenue
- Strong free cash flow margin of 27.9% enables it to reinvest or return capital consistently, and its rising cash conversion increases its margin of safety
Pinterest’s stock price of $19.20 implies a valuation ratio of 7.8x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.
BioMarin Pharmaceutical (BMRN)
Market Cap: $11.6 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 Does BMRN Stand Out?
- Solid 15.4% annual revenue growth over the last two years indicates its offering’s solve complex business issues
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 13.8% over the last five years outstripped its revenue performance
- Free cash flow margin grew by 17.2 percentage points over the last five years, giving the company more chips to play with
BioMarin Pharmaceutical is trading at $60.33 per share, or 11.7x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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.