1 Mid-Cap Stock to Research Further and 2 We Question

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 is one mid-cap stock with huge upside potential and two that could be down big.

Two Mid-Cap Stocks to Sell:

Donaldson (DCI)

Market Cap: $10.91 billion

Playing a vital role in the historic Apollo 11 mission, Donaldson (NYSE:DCI) manufacturers and sells filtration equipment for various industries.

Why Does DCI Worry Us?

1. Sales trends were unexciting over the last two years as its 4.2% annual growth was below the typical industrials company
2. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
3. Projected sales growth of 4% for the next 12 months suggests sluggish demand

Donaldson is trading at $93.73 per share, or 18.2x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than DCI.

Stanley Black & Decker (SWK)

Market Cap: $11.18 billion

With an iconic “STANLEY” logo which has remained virtually unchanged for over a century, Stanley Black & Decker (NYSE:SWK) is a manufacturer primarily catering to the tool and outdoor equipment industry.

Why Is SWK Risky?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
2. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 9.6% annually
3. Free cash flow margin shrank by 5.7 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

At $72.37 per share, Stanley Black & Decker trades at 14.2x forward P/E. Read our free research report to see why you should think twice about including SWK in your portfolio.

One Mid-Cap Stock to Watch:

IonQ (IONQ)

Market Cap: $19.4 billion

Founded by quantum physics pioneers from the University of Maryland and Duke University in 2015, IonQ (NYSE:IONQ) develops quantum computers that process information using trapped ions to solve complex computational problems beyond the capabilities of traditional computers.

Why Are We Fans of IONQ?

1. Annual revenue growth of 101% over the last two years was superb and indicates its market share increased during this cycle
2. Market share is on track to rise over the next 12 months as its 116% projected revenue growth implies demand will accelerate from its two-year trend
3. Adjusted operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient

IonQ’s stock price of $54.58 implies a valuation ratio of 82.9x forward price-to-sales. 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

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in 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 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% 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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