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. That said, here are three mid-cap stocks to swipe left on and some alternatives you should look into instead.

Warner Bros. Discovery (WBD)

Market Cap: $29.34 billion

Formed from the merger of WarnerMedia and Discovery, Warner Bros. Discovery (NASDAQ: WBD) is a multinational media and entertainment company, offering television networks, streaming services, and film and television production.

Why Do We Pass on WBD?

1. Sales tumbled by 4.2% annually over the last two years, showing consumer trends are working against its favor
2. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 30.9% annually
3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

At $11.89 per share, Warner Bros. Discovery trades at 3.2x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why WBD doesn’t pass our bar.

Jabil (JBL)

Market Cap: $23.11 billion

With manufacturing facilities spanning the globe from China to Mexico to the United States, Jabil (NYSE: JBL) provides electronics design, manufacturing, and supply chain solutions to companies across various industries, from healthcare to automotive to cloud computing.

Why Is JBL Not Exciting?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 10.1% annually over the last two years
2. Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 1.6% annually
3. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital

Jabil’s stock price of $215.74 implies a valuation ratio of 21.3x forward P/E. Read our free research report to see why you should think twice about including JBL in your portfolio.

Zimmer Biomet (ZBH)

Market Cap: $20.35 billion

With a history dating back to 1927 and a presence in over 100 countries worldwide, Zimmer Biomet (NYSE: ZBH) designs and manufactures orthopedic products including knee and hip replacements, surgical tools, and robotic technologies for joint reconstruction and spine surgeries.

Why Does ZBH Fall Short?

1. Annual revenue growth of 2.6% over the last five years was below our standards for the healthcare sector
2. Weak constant currency growth over the past two years indicates challenges in maintaining its market share
3. Underwhelming 4.2% return on capital reflects management’s difficulties in finding profitable growth opportunities

Zimmer Biomet is trading at $101.75 per share, or 12.7x forward P/E. Dive into our free research report to see why there are better opportunities than ZBH.

Stocks We Like More

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