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.
Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. That said, here is one mid-cap stock with massive growth potential and two that could be down big.
Two Mid-Cap Stocks to Sell:
onsemi (ON)
Market Cap: $21.84 billion
Spun out of Motorola in 1999 and built through a series of acquisitions, onsemi (NASDAQ: ON) is a global provider of analog chips specializing in autos, industrial applications, and power management in cloud data centers.
Why Are We Cautious About ON?
- Sales tumbled by 10.6% annually over the last two years, showing market trends are working against its favor during this cycle
- Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
- Poor free cash flow margin of 13.4% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
onsemi’s stock price of $52.68 implies a valuation ratio of 19.1x forward P/E. Read our free research report to see why you should think twice about including ON in your portfolio.
Clorox (CLX)
Market Cap: $14.9 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 Does CLX Worry Us?
- Products fail to spark excitement with consumers, as seen in its flat sales over the last three years
- Sales are projected to tank by 1% over the next 12 months as demand evaporates further
Clorox is trading at $121.14 per share, or 16.6x forward P/E. Dive into our free research report to see why there are better opportunities than CLX.
One Mid-Cap Stock to Buy:
Hims & Hers Health (HIMS)
Market Cap: $13.67 billion
Originally launched with a focus on stigmatized conditions like hair loss and sexual health, Hims & Hers Health (NYSE: HIMS) operates a consumer-focused telehealth platform that connects patients with healthcare providers for prescriptions and wellness products.
Why Will HIMS Outperform?
- Customer growth averaged 48.6% over the past two years, showing its ability to "land" new contracts and potentially "expand" them later - a powerful one-two punch for sales
- Earnings per share grew by 37% annually over the last four years, massively outpacing its peers
- Free cash flow margin increased by 23.5 percentage points over the last five years, giving the company more capital to invest or return to shareholders
At $60.86 per share, Hims & Hers Health trades at 46.2x forward EV-to-EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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
