2 Mid-Cap Stocks Worth Your Attention and 1 We Find Risky

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.

These dynamics can rattle even the most seasoned professionals, which is why we started StockStory - to help you separate the good companies from the bad. 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:

Allison Transmission (ALSN)

Market Cap: $10.11 billion

Helping build race cars at one point, Allison Transmission (NYSE:ALSN) offers transmissions to original equipment manufacturers and fleet operators.

Why Do We Think Twice About ALSN?

1. Sales stagnated over the last two years and signal the need for new growth strategies
2. Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term

Allison Transmission is trading at $122.14 per share, or 13.5x forward P/E. Dive into our free research report to see why there are better opportunities than ALSN.

Two Mid-Cap Stocks to Buy:

Lululemon (LULU)

Market Cap: $20.32 billion

Originally serving yogis and hockey players, Lululemon (NASDAQ:LULU) is a designer, distributor, and retailer of athletic apparel for men and women.

Why Is LULU a Top Pick?

1. Brick-and-mortar locations are witnessing elevated demand as their same-store sales growth averaged 3.8% over the past two years
2. Collection of products is difficult to replicate at scale and results in a best-in-class gross margin of 58.6%
3. LULU is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

Lululemon’s stock price of $173.13 implies a valuation ratio of 14.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Curtiss-Wright (CW)

Market Cap: $25.02 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. Annual revenue growth of 10.9% over the past two years was outstanding, reflecting market share gains this cycle
2. Disciplined cost controls and effective management resulted in a strong long-term operating margin of 16.9%, and its operating leverage amplified its profits over the last five years
3. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 18.8% exceeded its revenue gains over the last two years

At $678.50 per share, Curtiss-Wright trades at 47.4x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.

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.