3 Mid-Cap Stocks in the Doghouse

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.

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 three mid-cap stocks to swipe left on and some alternatives you should look into instead.

FOX (FOXA)

Market Cap: $23.6 billion

Founded in 1915, Fox (NASDAQ:FOXA) is a diversified media company, operating prominent cable news, television broadcasting, and digital media platforms.

Why Are We Out on FOXA?

1. Sizable revenue base leads to growth challenges as its 3.9% annual revenue increases over the last two years fell short of other consumer discretionary companies
2. Projected sales decline of 4.3% for the next 12 months points to a tough demand environment ahead

At $54.94 per share, FOX trades at 13.9x forward P/E. If you’re considering FOXA for your portfolio, see our FREE research report to learn more.

Exact Sciences (EXAS)

Market Cap: $10.62 billion

With a mission to detect cancer earlier when it's more treatable, Exact Sciences (NASDAQ:EXAS) develops and markets cancer screening and diagnostic tests, including its flagship Cologuard stool-based colorectal cancer screening test.

Why Does EXAS Give Us Pause?

1. Cash-burning history makes us doubt the long-term viability of its business model
2. Negative returns on capital show that some of its growth strategies have backfired
3. 11× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

Exact Sciences is trading at $55.44 per share, or 85.5x forward P/E. Read our free research report to see why you should think twice about including EXAS in your portfolio.

HP (HPQ)

Market Cap: $23.39 billion

Born from the legendary Silicon Valley garage startup founded by Bill Hewlett and Dave Packard in 1939, HP (NYSE:HPQ) designs and sells personal computers, printers, and related technology products and services to consumers, businesses, and enterprises worldwide.

Why Do We Steer Clear of HPQ?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 1% annually over the last five years
2. Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable
3. 4.1 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

HP’s stock price of $24.91 implies a valuation ratio of 6.9x forward P/E. Check out our free in-depth research report to learn more about why HPQ doesn’t pass our bar.

Stocks We Like More

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free.