2 Mid-Cap Stocks Worth Investigating and 1 We Brush Off

Mid-cap stocks often strike the right balance between having proven business models and market opportunities that can support $100 billion corporations. However, they face intense competition from scaled industry giants and can be disrupted by new innovative players vying for a slice of the pie.

This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. That said, here are two mid-cap stocks with huge upside potential and one best left ignored.

One Mid-Cap Stock to Sell:

Aramark (ARMK)

Market Cap: $10.41 billion

From serving hot dogs at major league stadiums to managing college dining halls that feed thousands daily, Aramark (NYSE:ARMK) provides food services and facilities management to schools, healthcare facilities, businesses, sports venues, and correctional institutions across 16 countries.

Why Are We Cautious About ARMK?

1. Sales stagnated over the last two years and signal the need for new growth strategies
2. Earnings per share fell by 31% annually over the last two years while its revenue was flat, showing each sale was less profitable
3. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital

At $39.62 per share, Aramark trades at 17.7x forward P/E. To fully understand why you should be careful with ARMK, check out our full research report (it’s free).

Two Mid-Cap Stocks to Watch:

Dycom (DY)

Market Cap: $11.11 billion

Working alongside some of the most popular mobile carriers in the world, Dycom (NYSE:DY) builds and maintains telecommunications infrastructure.

Why Are We Bullish on DY?

1. Annual revenue growth of 11.8% over the past two years was outstanding, reflecting market share gains this cycle
2. Operating margin improvement of 5.9 percentage points over the last five years demonstrates its ability to scale efficiently
3. Share buybacks catapulted its annual earnings per share growth to 33.3%, which outperformed its revenue gains over the last five years

Dycom is trading at $370.59 per share, or 28.6x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

EPAM (EPAM)

Market Cap: $11.75 billion

Founded in 1993 during the early days of offshore software development, EPAM Systems (NYSE:EPAM) provides digital engineering, cloud, and AI transformation services to help global enterprises and startups modernize their technology systems and create digital products.

Why Could EPAM Be a Winner?

1. Revenue base of $5.30 billion gives it economies of scale and some distribution advantages
2. Robust free cash flow margin of 10.5% gives it many options for capital deployment
3. Stellar returns on capital showcase management’s ability to surface highly profitable business ventures

EPAM’s stock price of $212.67 implies a valuation ratio of 17.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

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 Strong Momentum Stocks for this week. 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.