1 Mid-Cap Stock to Target This Week and 2 Facing Challenges

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. Keeping that in mind, here is one mid-cap stock with massive growth potential and two best left ignored.

Two Mid-Cap Stocks to Sell:

DocuSign (DOCU)

Market Cap: $14.51 billion

Creating the digital equivalent of "sign on the dotted line" for over a billion users worldwide, DocuSign (NASDAQ:DOCU) provides an agreement management platform that enables businesses to electronically prepare, sign, and manage documents and contracts.

Why Are We Wary of DOCU?

1. Underwhelming ARR growth of 8.3% over the last year suggests the company faced challenges in acquiring and retaining long-term customers
2. Anticipated sales growth of 6.6% for the next year implies demand will be shaky
3. Operating profits and efficiency rose over the last year as it benefited from some fixed cost leverage

DocuSign’s stock price of $72.64 implies a valuation ratio of 4.6x forward price-to-sales. Read our free research report to see why you should think twice about including DOCU in your portfolio.

Jabil (JBL)

Market Cap: $21.7 billion

With manufacturing facilities spanning the globe from China to Mexico to the United States, Jabil (NYSE:JBL) provides electronics design, manufacturing, and supply chain solutions to companies across various industries, from healthcare to automotive to cloud computing.

Why Does JBL Give Us Pause?

1. Annual sales declines of 7.3% for the past two years show its products and services struggled to connect with the market during this cycle
2. Earnings growth underperformed the sector average over the last two years as its EPS grew by just 6.5% annually
3. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital

Jabil is trading at $202.30 per share, or 18.6x forward P/E. Check out our free in-depth research report to learn more about why JBL doesn’t pass our bar.

One Mid-Cap Stock to Watch:

CACI (CACI)

Market Cap: $11.63 billion

Founded to commercialize SIMSCRIPT, CACI International (NYSE:CACI) offers defense, intelligence, and IT solutions to support national security and government transformation efforts.

Why Does CACI Stand Out?

1. Demand is greater than supply as the company’s 11.6% average backlog growth over the past two years shows it’s securing new contracts and accumulating more orders than it can fulfill
2. Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
3. Share repurchases over the last two years enabled its annual earnings per share growth of 18.6% to outpace its revenue gains

At $529 per share, CACI trades at 19.4x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

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 6 Stocks for this week. 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-micro-cap company Kadant (+351% 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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