2 Mid-Cap Stocks with Solid Fundamentals and 1 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.

This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. 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:

Invesco (IVZ)

Market Cap: $11.69 billion

With roots dating back to 1935 when it pioneered the first mutual fund with an objective of capital growth, Invesco (NYSE:IVZ) is a global asset management firm that offers investment solutions across equities, fixed income, alternatives, and multi-asset strategies.

Why Is IVZ Risky?

1. Sales were flat over the last five years, indicating it’s failed to expand this cycle
2. Earnings per share were flat over the last five years and fell short of the peer group average
3. ROE of 5.8% reflects management’s challenges in identifying attractive investment opportunities

Invesco is trading at $26.27 per share, or 11.3x forward P/E. Dive into our free research report to see why there are better opportunities than IVZ.

Two Mid-Cap Stocks to Watch:

Texas Roadhouse (TXRH)

Market Cap: $11.13 billion

With locations often featuring Western-inspired decor, Texas Roadhouse (NASDAQ:TXRH) is an American restaurant chain specializing in Southern-style cuisine and steaks.

Why Does TXRH Catch Our Eye?

1. Offensive push to build new restaurants and attack its untapped market opportunities is backed by its same-store sales growth
2. Average same-store sales growth of 7.3% over the past two years indicates its restaurants are resonating with diners
3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures

Texas Roadhouse’s stock price of $168.67 implies a valuation ratio of 25.9x 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.

Carlisle (CSL)

Market Cap: $13.8 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 Do We Like CSL?

1. Disciplined cost controls and effective management resulted in a strong long-term operating margin of 19.5%, and it turbocharged its profits by achieving some fixed cost leverage
2. Share buybacks catapulted its annual earnings per share growth to 24.7%, which outperformed its revenue gains over the last five years
3. Robust free cash flow margin of 15.3% gives it many options for capital deployment, and its improved cash conversion implies it’s becoming a less capital-intensive business

At $331.09 per share, Carlisle trades at 16.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

Stocks We Like Even More

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged 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 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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