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 huge upside potential and two that may have trouble.
Two Mid-Cap Stocks to Sell:
The New York Times (NYT)
Market Cap: $13.08 billion
Founded in 1851, The New York Times (NYSE: NYT) is an American media organization known for its influential newspaper and expansive digital journalism platforms.
Why Should You Dump NYT?
- Number of subscribers has disappointed over the past two years, indicating weak demand for its offerings
- Subpar operating margin of 14.5% constrains its ability to invest in process improvements or effectively respond to new competitive threats
- ROIC hasn’t moved, making investors question whether its recent investments can increase profitability
The New York Times is trading at $80.82 per share, or 30x forward P/E. To fully understand why you should be careful with NYT, check out our full research report (it’s free).
Kratos (KTOS)
Market Cap: $16.45 billion
Established with a commitment to supporting national security, Kratos (NASDAQ: KTOS) is a provider of advanced engineering, technology, and security solutions tailored for critical national security applications.
Why Are We Hesitant About KTOS?
- Subpar operating margin of 2.1% has withered over the last five years as it prioritized growth over profits
- Free cash flow margin shrank by 8.8 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- ROIC of 1.3% reflects management’s challenges in identifying attractive investment opportunities
Kratos’s stock price of $89.08 implies a valuation ratio of 114.6x forward P/E. If you’re considering KTOS for your portfolio, see our FREE research report to learn more.
One Mid-Cap Stock to Watch:
Broadridge (BR)
Market Cap: $22.04 billion
Processing over $10 trillion in equity and fixed income trades daily and managing proxy voting for over 800 million equity positions, Broadridge Financial Solutions (NYSE: BR) provides technology-driven solutions that power investing, governance, and communications for banks, broker-dealers, asset managers, and public companies.
Why Could BR Be a Winner?
- Solid 8.9% annual revenue growth over the last five years indicates its offering’s solve complex business issues
- Free cash flow margin increased by 11.2 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- Returns on capital are growing as management capitalizes on its market opportunities
At $188.80 per share, Broadridge trades at 19.4x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
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.
