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.
Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. That said, here is one mid-cap stock with a long growth runway and two that could be down big.
Two Mid-Cap Stocks to Sell:
Entegris (ENTG)
Market Cap: $22.1 billion
With fabs representing the company’s largest customer type, Entegris (NASDAQ: ENTG) supplies products that purify, protect, and generally ensure the integrity of raw materials needed for advanced semiconductor manufacturing.
Why Does ENTG Give Us Pause?
- Sales tumbled by 2.1% annually over the last two years, showing market trends are working against it during this cycle
- Estimated sales growth of 10.2% for the next 12 months is soft and implies weaker demand
- Poor free cash flow margin of 11.9% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
Entegris’s stock price of $171.85 implies a valuation ratio of 42.1x forward P/E. Check out our free in-depth research report to learn more about why ENTG doesn’t pass our bar.
Webster Financial (WBS)
Market Cap: $11.86 billion
Founded during the Great Depression in 1935 and evolving into a major Northeastern financial institution, Webster Financial (NYSE: WBS) is a bank holding company that provides commercial banking, consumer banking, and employee benefits solutions through its Webster Bank and HSA Bank division.
Why Does WBS Worry Us?
- Sales trends were unexciting over the last two years as its 4.6% annual growth was below the typical banking company
- Anticipated 1.4 percentage point rise in its efficiency ratio suggests its expenses will increase as a percentage of revenue
- Incremental sales over the last two years were less profitable as its 3% annual earnings per share growth lagged its revenue gains
Webster Financial is trading at $76.03 per share, or 1.2x forward P/B. Read our free research report to see why you should think twice about including WBS in your portfolio.
One Mid-Cap Stock to Watch:
Valmont (VMI)
Market Cap: $10.26 billion
Credited with an invention in the 1950s that improved crop yields, Valmont (NYSE: VMI) provides engineered products and infrastructure services for the agricultural industry.
Why Could VMI Be a Winner?
- Operating margin improvement of 2.4 percentage points over the last five years demonstrates its ability to scale efficiently
- Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 57.6% annually
- Free cash flow margin grew by 10.2 percentage points over the last five years, giving the company more chips to play with
At $573.38 per share, Valmont trades at 2.5x forward price-to-sales. Is now the right time to buy? See for yourself in our full 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
