2 Mid-Cap Stocks with Exciting Potential and 1 We Question

By Jabin Bastian | January 15, 2026, 11:33 PM

KHC Cover Image

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.

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 long growth runways and one that may have trouble.

One Mid-Cap Stock to Sell:

Kraft Heinz (KHC)

Market Cap: $28.69 billion

The result of a 2015 mega-merger between Kraft and Heinz, Kraft Heinz (NASDAQ:KHC) is a packaged foods giant whose products span coffee to cheese to packaged meat.

Why Should You Sell KHC?

  1. Shrinking unit sales over the past two years suggest it might have to lower prices to stimulate growth
  2. Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 34.6 percentage points
  3. Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its decreasing returns suggest its historical profit centers are aging

At $24.27 per share, Kraft Heinz trades at 9.8x forward P/E. To fully understand why you should be careful with KHC, check out our full research report (it’s free).

Two Mid-Cap Stocks to Watch:

Curtiss-Wright (CW)

Market Cap: $24.36 billion

Formed from a merger of 12 companies, Curtiss-Wright (NYSE:CW) provides a range of products and services to the aerospace, industrial, electronic, and maritime industries.

Why Will CW Outperform?

  1. 9.5% annual revenue growth over the last two years surpassed the sector average as its offerings resonated with customers
  2. Highly efficient business model is illustrated by its impressive 16.5% operating margin, and its profits increased over the last five years as it scaled
  3. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 18% exceeded its revenue gains over the last two years

Curtiss-Wright’s stock price of $661.95 implies a valuation ratio of 45.4x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

Incyte (INCY)

Market Cap: $20.66 billion

Founded in 1991 and evolving from a genomics research firm to a commercial-stage drug developer, Incyte (NASDAQ:INCY) is a biopharmaceutical company that discovers, develops, and commercializes proprietary therapeutics for cancer and inflammatory diseases.

Why Are We Fans of INCY?

  1. Offerings and unique value proposition resonate with customers, as seen in its above-market 15.5% annual sales growth over the last two years
  2. Share buybacks catapulted its annual earnings per share growth to 60.8%, which outperformed its revenue gains over the last five years
  3. Free cash flow margin increased by 6.8 percentage points over the last five years, giving the company more capital to invest or return to shareholders

Incyte is trading at $105.20 per share, or 14.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

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