1 Mid-Cap Stock to Own for Decades and 2 We Question

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.

These dynamics can rattle even the most seasoned professionals, which is why we started StockStory - to help you separate the good companies from the bad. That said, here is one mid-cap stock with massive growth potential and two that may have trouble.

Two Mid-Cap Stocks to Sell:

Wynn Resorts (WYNN)

Market Cap: $12.5 billion

Founded by the former Mirage Resorts CEO, Wynn Resorts (NASDAQ:WYNN) is a global developer and operator of high-end hotels and casinos, known for its luxurious properties and premium guest services.

Why Is WYNN Not Exciting?

1. 9.9% annual revenue growth over the last five years was slower than its consumer discretionary peers
2. ROIC of 4% reflects management’s challenges in identifying attractive investment opportunities
3. 5× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly

At $121.11 per share, Wynn Resorts trades at 26.1x forward P/E. Check out our free in-depth research report to learn more about why WYNN doesn’t pass our bar.

Pool (POOL)

Market Cap: $12.16 billion

Founded in 1993 and headquartered in Louisiana, Pool (NASDAQ:POOL) is one of the largest wholesale distributors of swimming pool supplies, equipment, and related leisure products.

Why Should You Sell POOL?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
2. Free cash flow margin is forecasted to shrink by 2.4 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
3. Diminishing returns on capital suggest its earlier profit pools are drying up

Pool is trading at $326 per share, or 28.5x forward P/E. To fully understand why you should be careful with POOL, check out our full research report (it’s free).

One Mid-Cap Stock to Buy:

Sprouts (SFM)

Market Cap: $13.29 billion

Playing on the secular trend of healthier living, Sprouts Farmers Market (NASDAQ:SFM) is a grocery store chain emphasizing natural and organic products.

Why Should You Buy SFM?

1. Rapid rollout of new stores to capitalize on market opportunities makes sense given its strong same-store sales performance
2. Locations open for at least a year are seeing increased demand as same-store sales have averaged 7.5% growth over the past two years
3. Market share is on track to rise over the next 12 months as its 11.8% projected revenue growth implies demand will accelerate from its six-year trend

Sprouts’s stock price of $138 implies a valuation ratio of 25.2x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at 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

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