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.
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 are two mid-cap stocks with long growth runways and one that may have trouble.
One Mid-Cap Stock to Sell:
Solventum (SOLV)
Market Cap: $15.51 billion
Founded in 1985, Solventum (NYSE:SOLV) develops, manufactures, and commercializes a portfolio of healthcare products and services addressing critical customer and therapeutic patient needs.
Why Does SOLV Fall Short?
- 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
- Sales are projected to be flat over the next 12 months and imply weak demand
- Free cash flow margin shrank by 18.2 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
Solventum’s stock price of $91.12 implies a valuation ratio of 13.5x forward P/E. Read our free research report to see why you should think twice about including SOLV in your portfolio.
Two Mid-Cap Stocks to Watch:
Flowserve (FLS)
Market Cap: $10.21 billion
Manufacturing the largest pump ever built for nuclear power generation, Flowserve (NYSE:FLS) manufactures and sells flow control equipment for various industries.
Why Could FLS Be a Winner?
- Operating margin improvement of 2.4 percentage points over the last five years demonstrates its ability to scale efficiently
- Share repurchases over the last two years enabled its annual earnings per share growth of 23.7% to outpace its revenue gains
- Free cash flow margin expanded by 7.3 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
Flowserve is trading at $80.33 per share, or 18.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Curtiss-Wright (CW)
Market Cap: $22.03 billion
Formed from a merger of 12 companies, Curtiss-Wright (NYSE:CW) provides a range of products and services to the aerospace, industrial, electronic, and maritime industries.
Why Should You Buy CW?
- Solid 10.2% annual revenue growth over the last two years indicates its offerings solve complex business issues
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 17.9% exceeded its revenue gains over the last two years
- Free cash flow margin jumped by 9 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
At $596.64 per share, Curtiss-Wright trades at 37.6x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.