1 Mid-Cap Stock with Exciting Potential and 2 to Avoid
In This Article:
Many investors pay attention to mid-cap stocks because they have established business models and expansive market opportunities. However, their paths to becoming $100 billion corporations are ripe with competition, ranging from giants with vast resources to agile upstarts eager to disrupt the status quo.
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 huge upside potential and two that could be down big.
Two Mid-Cap Stocks to Sell:
Carlisle (CSL)
Market Cap: $16.48 billion
Originally founded as Carlisle Tire and Rubber Company, Carlisle Companies (NYSE:CSL) is a multi-industry product manufacturer focusing on construction materials and weatherproofing technologies.
Why Does CSL Give Us Pause?
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Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
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Projected sales growth of 5.1% for the next 12 months suggests sluggish demand
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Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 4.8% annually
Carlisle’s stock price of $381.88 implies a valuation ratio of 16.8x forward P/E. Dive into our free research report to see why there are better opportunities than CSL.
Zebra (ZBRA)
Market Cap: $14.8 billion
Taking its name from the black and white stripes of barcodes, Zebra Technologies (NASDAQ:ZBRA) provides barcode scanners, mobile computers, RFID systems, and other data capture technologies that help businesses track assets and optimize operations.
Why Should You Sell ZBRA?
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Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
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Sales were less profitable over the last two years as its earnings per share fell by 8.2% annually, worse than its revenue declines
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Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Zebra is trading at $291.03 per share, or 18.8x forward P/E. Read our free research report to see why you should think twice about including ZBRA in your portfolio, it’s free.
One Mid-Cap Stock to Watch:
BioMarin Pharmaceutical (BMRN)
Market Cap: $10.76 billion
Pioneering treatments for conditions that often had no previous therapeutic options, BioMarin Pharmaceutical (NASDAQ:BMRN) develops and commercializes therapies that address the root causes of rare genetic disorders, particularly those affecting children.