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.
This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. 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:
MasTec (MTZ)
Market Cap: $23.12 billion
Involved in the 1996 Olympic Games MasTec (NYSE: MTZ) is an infrastructure construction company that specializes in the telecommunications, energy, and utility industries.
Why Does MTZ Give Us Pause?
- Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 12.7%
- Responsiveness to unforeseen market trends is restricted due to its substandard operating margin profitability
- Free cash flow margin shrank by 5.8 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
MasTec is trading at $297.59 per share, or 35.8x forward P/E. Dive into our free research report to see why there are better opportunities than MTZ.
East West Bank (EWBC)
Market Cap: $14.55 billion
As the largest independent bank in the U.S. focused on bridging financial services between America and Asia, East West Bancorp (NASDAQ: EWBC) operates a commercial bank that provides personal and business banking services with a unique focus on facilitating U.S.-Asia cross-border transactions.
Why Are We Wary of EWBC?
- Annual revenue growth of 5.5% over the last two years was below our standards for the banking sector
- Net interest margin dropped by 25.3 basis points (100 basis points = 1 percentage point) over the last two years, implying the firm’s loan book profitability fell as competitors entered the market
- Earnings per share lagged its peers over the last two years as they only grew by 5.4% annually
At $105.73 per share, East West Bank trades at 1.5x forward P/B. Check out our free in-depth research report to learn more about why EWBC doesn’t pass our bar.
One Mid-Cap Stock to Watch:
Expedia (EXPE)
Market Cap: $27.9 billion
Originally founded as a part of Microsoft, Expedia (NASDAQ: EXPE) is one of the world’s leading online travel agencies.
Why Does EXPE Stand Out?
- Platform is difficult to replicate at scale and leads to a best-in-class gross margin of 89.8%
- Highly efficient business model is illustrated by its impressive 22.6% EBITDA margin, and it turbocharged its profits by achieving some fixed cost leverage
- Share buybacks catapulted its annual earnings per share growth to 33%, which outperformed its revenue gains over the last three years
Expedia’s stock price of $227.34 implies a valuation ratio of 7.6x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum — both boxes checked at the same time.
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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.
