2 Mid-Cap Stocks to Keep an Eye On and 1 Facing Challenges

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. Keeping that in mind, here are two mid-cap stocks with huge upside potential and one best left ignored.

One Mid-Cap Stock to Sell:

Universal Health Services (UHS)

Market Cap: $13.39 billion

With a network spanning 39 states and three countries, Universal Health Services (NYSE:UHS) operates acute care hospitals and behavioral health facilities across the United States, United Kingdom, and Puerto Rico.

Why Are We Wary of UHS?

1. Weak comparable store sales trends over the past two years suggest there may be few opportunities in its core markets to open new facilities
2. Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 1.3 percentage points
3. Low free cash flow margin of 4.1% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders

Universal Health Services is trading at $210.40 per share, or 9.9x forward P/E. If you’re considering UHS for your portfolio, see our FREE research report to learn more.

Two Mid-Cap Stocks to Watch:

The Trade Desk (TTD)

Market Cap: $26.35 billion

Built as an alternative to "walled garden" advertising ecosystems, The Trade Desk (NASDAQ:TTD) provides a cloud-based platform that helps advertisers and agencies plan, manage, and optimize digital advertising campaigns across multiple channels and devices.

Why Are We Backing TTD?

1. Annual revenue growth of 24.4% over the last two years was superb and indicates its market share is rising
2. Average billings growth of 23.2% over the last year enhances its liquidity and shows there is steady demand for its products
3. Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently

At $53.75 per share, The Trade Desk trades at 8.8x forward price-to-sales. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.

Centene (CNC)

Market Cap: $17.69 billion

Serving nearly 1 in 15 Americans through its government healthcare programs, Centene (NYSE:CNC) is a healthcare company that manages government-sponsored health insurance programs like Medicaid and Medicare for low-income and complex-needs populations.

Why Could CNC Be a Winner?

1. Solid 14.2% annual revenue growth over the last five years indicates its offering’s solve complex business issues
2. Dominant market position is represented by its $178.2 billion in revenue, which gives it negotiating power over membership pricing and reimbursement rates
3. Returns on capital are increasing as management’s prior bets are starting to bear fruit

Centene’s stock price of $33.68 implies a valuation ratio of 22.6x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

Stocks We Like Even More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 5 Strong Momentum 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 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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