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 huge upside potential and one best left ignored.
One Mid-Cap Stock to Sell:
Invesco (IVZ)
Market Cap: $11.69 billion
With roots dating back to 1935 when it pioneered the first mutual fund with an objective of capital growth, Invesco (NYSE: IVZ) is a global asset management firm that offers investment solutions across equities, fixed income, alternatives, and multi-asset strategies.
Why Is IVZ Risky?
- Sales were flat over the last five years, indicating it’s failed to expand this cycle
- Earnings per share were flat over the last five years and fell short of the peer group average
- ROE of 5.8% reflects management’s challenges in identifying attractive investment opportunities
Invesco is trading at $26.27 per share, or 11.3x forward P/E. Dive into our free research report to see why there are better opportunities than IVZ.
Two Mid-Cap Stocks to Watch:
Texas Roadhouse (TXRH)
Market Cap: $11.13 billion
With locations often featuring Western-inspired decor, Texas Roadhouse (NASDAQ: TXRH) is an American restaurant chain specializing in Southern-style cuisine and steaks.
Why Does TXRH Catch Our Eye?
- Offensive push to build new restaurants and attack its untapped market opportunities is backed by its same-store sales growth
- Average same-store sales growth of 7.3% over the past two years indicates its restaurants are resonating with diners
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
Texas Roadhouse’s stock price of $168.67 implies a valuation ratio of 25.9x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.
Carlisle (CSL)
Market Cap: $13.8 billion
Originally founded as Carlisle Tire and Rubber Company, Carlisle Companies (NYSE: CSL) is a multi-industry product manufacturer focusing on construction materials and weatherproofing technologies.
Why Do We Like CSL?
- Disciplined cost controls and effective management resulted in a strong long-term operating margin of 19.5%, and it turbocharged its profits by achieving some fixed cost leverage
- Share buybacks catapulted its annual earnings per share growth to 24.7%, which outperformed its revenue gains over the last five years
- Robust free cash flow margin of 15.3% gives it many options for capital deployment, and its improved cash conversion implies it’s becoming a less capital-intensive business
At $331.09 per share, Carlisle trades at 16.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
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 5 Growth Stocks for this month. 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 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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