2 Mid-Cap Stocks to Target This Week and 1 We Find Risky

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 long growth runways and one best left ignored.

One Mid-Cap Stock to Sell:

CooperCompanies (COO)

Market Cap: $16.43 billion

With a history dating back to 1958 and a portfolio spanning two distinct healthcare segments, Cooper Companies (NASDAQ:COO) develops and manufactures medical devices focused on vision care through contact lenses and women's health including fertility products and services.

Why Are We Cautious About COO?

1. Sales trends were unexciting over the last two years as its 6.7% annual growth was below the typical healthcare company
2. 7.3 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
3. Below-average returns on capital indicate management struggled to find compelling investment opportunities

CooperCompanies’s stock price of $83.85 implies a valuation ratio of 18.4x forward P/E. Read our free research report to see why you should think twice about including COO in your portfolio.

Two Mid-Cap Stocks to Watch:

Lennox (LII)

Market Cap: $17.38 billion

Based in Texas and founded over a century ago, Lennox (NYSE:LII) is a climate control solutions company offering heating, ventilation, air conditioning, and refrigeration (HVACR) goods.

Why Does LII Stand Out?

1. Excellent operating margin of 17.2% highlights the efficiency of its business model, and its rise over the last five years was fueled by some leverage on its fixed costs
2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 18.3% exceeded its revenue gains over the last two years
3. Stellar returns on capital showcase management’s ability to surface highly profitable business ventures

Lennox is trading at $495.50 per share, or 21.1x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.

LPL Financial (LPLA)

Market Cap: $29.67 billion

As the nation's largest independent broker-dealer with no proprietary products of its own, LPL Financial (NASDAQ:LPLA) provides technology, compliance, and business support services to independent financial advisors and institutions who manage investments for retail clients.

Why Should You Buy LPLA?

1. Annual revenue growth of 26.4% over the past two years was outstanding, reflecting market share gains this cycle
2. Performance over the past five years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 23.7% outpaced its revenue gains
3. Industry-leading 38.5% return on equity demonstrates management’s skill in finding high-return investments

At $371.65 per share, LPL Financial trades at 16.1x 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-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.