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. That said, here is one mid-cap stock with a long growth runway and two that may have trouble.
Two Mid-Cap Stocks to Sell:
Clorox (CLX)
Market Cap: $15.33 billion
Founded in 1913 with bleach as the sole product offering, Clorox (NYSE: CLX) today is a consumer products giant whose product portfolio spans everything from bleach to skincare to salad dressing to kitty litter.
Why Does CLX Fall Short?
- Annual sales declines of 1.5% for the past three years show its products struggled to connect with the market
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Estimated sales for the next 12 months are flat and imply a softer demand environment
Clorox is trading at $127.28 per share, or 18.7x forward P/E. To fully understand why you should be careful with CLX, check out our full research report (it’s free).
News Corp (NWSA)
Market Cap: $13.26 billion
Established in 2013 after a restructuring, News Corp (NASDAQ: NWSA) is a multinational conglomerate known for its news publishing, broadcasting, digital media, and book publishing.
Why Do We Think NWSA Will Underperform?
- Sales were flat over the last five years, indicating it’s failed to expand its business
- Low free cash flow margin of 7.3% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
- ROIC hasn’t moved, making investors question whether its recent investments can increase profitability
News Corp’s stock price of $22.96 implies a valuation ratio of 19.8x forward P/E. Read our free research report to see why you should think twice about including NWSA in your portfolio.
One Mid-Cap Stock to Buy:
RBC Bearings (RBC)
Market Cap: $17.79 billion
With a Guinness World Record for engineering the largest spherical plain bearing, RBC Bearings (NYSE: RBC) is a manufacturer of bearings and related components for the aerospace & defense, industrial, and transportation industries.
Why Do We Love RBC?
- Annual revenue growth of 23.1% over the past five years was outstanding, reflecting market share gains this cycle
- Earnings per share have massively outperformed its peers over the last two years, increasing by 18.3% annually
- Strong free cash flow margin of 15.8% enables it to reinvest or return capital consistently
At $562.55 per share, RBC Bearings trades at 41.2x 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
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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 244% over the last five years (as of June 30, 2025).
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.
