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2 Mid-Cap Stocks with Exciting Potential and 1 We Turn Down

ROKU Cover Image

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 are two mid-cap stocks with long growth runways and one that could be down big.

One Mid-Cap Stock to Sell:

Clorox (CLX)

Market Cap: $12.3 billion

Founded in 1913 with bleach as the sole product offering, Clorox (NYSE: CLX) today is a consumer products giant whose product portfolio spans everything from bleach to skincare to salad dressing to kitty litter.

Why Is CLX Not Exciting?

  1. Sales tumbled by 1.3% annually over the last three years, showing consumer trends are working against its favor
  2. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
  3. Sales are projected to tank by 1.3% over the next 12 months as its demand continues evaporating

Clorox’s stock price of $100.95 implies a valuation ratio of 15.7x forward P/E. To fully understand why you should be careful with CLX, check out our full research report (it’s free for active Edge members).

Two Mid-Cap Stocks to Watch:

Roku (ROKU)

Market Cap: $16.06 billion

With a name meaning six in Japanese because it was the founder's sixth company that he started, Roku (NASDAQ: ROKU) makes hardware players that offer access to various online streaming TV services.

Why Is ROKU Interesting?

  1. Has the opportunity to boost monetization through new features and premium offerings as its total hours streamed have grown by 18.7% annually over the last two years
  2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 51.2% over the last three years outstripped its revenue performance
  3. Free cash flow margin expanded by 14 percentage points over the last few years, providing additional flexibility for investments and share buybacks/dividends

Roku is trading at $108.59 per share, or 28.2x forward EV/EBITDA. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.

Carlyle (CG)

Market Cap: $21.93 billion

Founded in 1987 with just $5 million in capital and named after the iconic New York hotel where the founders first met, The Carlyle Group (NASDAQ: CG) is a global investment firm that raises, manages, and deploys capital across private equity, credit, and investment solutions.

Why Do We Love CG?

  1. Annual revenue growth of 10.9% over the last five years was above the sector average and underscores its products and services value to customers
  2. Fee-related earnings increased by 23.6% annually over the last two years as it refined its cost structure
  3. Incremental sales significantly boosted profitability as its annual earnings per share growth of 23.9% over the last two years outstripped its revenue performance

At $60.98 per share, Carlyle trades at 12.9x 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

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 9 Market-Beating Stocks. 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-micro-cap company Tecnoglass (+1,754% 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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