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.
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 are two mid-cap stocks with long growth runways and one best left ignored.
One Mid-Cap Stock to Sell:
Bentley Systems (BSY)
Market Cap: $10.22 billion
Pioneering the concept of "digital twins" for infrastructure projects long before it became an industry buzzword, Bentley Systems (NASDAQ: BSY) provides software solutions that help engineers design, build, and operate infrastructure projects across sectors including roads, bridges, utilities, mining, and industrial facilities.
Why Does BSY Worry Us?
- Average ARR growth of 12.8% over the last year has disappointed, suggesting it’s had a hard time winning long-term deals and renewals
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 11.9%
- Operating margin was unchanged over the last year, suggesting it failed to gain leverage on its fixed costs
Bentley Systems’s stock price of $32.66 implies a valuation ratio of 6.1x forward price-to-sales. If you’re considering BSY for your portfolio, see our FREE research report to learn more.
Two Mid-Cap Stocks to Buy:
DexCom (DXCM)
Market Cap: $22.89 billion
Founded in 1999 and receiving its first FDA approval in 2006, DexCom (NASDAQ: DXCM) develops and sells continuous glucose monitoring systems that allow people with diabetes to track their blood sugar levels without repeated finger pricks.
Why Will DXCM Outperform?
- Average organic revenue growth of 12.5% over the past two years demonstrates its ability to expand independently without relying on acquisitions
- Free cash flow margin grew by 26 percentage points over the last five years, giving the company more chips to play with
- Rising returns on capital show management is finding more attractive investment opportunities
DexCom is trading at $59.74 per share, or 23x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
SEI Investments (SEIC)
Market Cap: $11.02 billion
Founded in 1968 as Simulated Environments Inc. to train bank loan officers using computer simulations, SEI Investments (NASDAQ: SEIC) provides technology platforms, investment management, and operational solutions for financial institutions, wealth managers, and investors.
Why Should You Buy SEIC?
- 9.9% annual revenue growth over the last two years was better than the sector average, highlighting the value of its products and services
- Share repurchases over the last two years enabled its annual earnings per share growth of 26% to outpace its revenue gains
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
At $91.57 per share, SEI Investments trades at 15.1x forward P/E. 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
