Many investors pay attention to mid-cap stocks because they have established business models and expansive market opportunities. However, their paths to becoming $100 billion corporations are ripe with competition, ranging from giants with vast resources to agile upstarts eager to disrupt the status quo.
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.
Veralto (VLTO)
Market Cap: $20.3 billion
Spun off from Danaher in 2023, Veralto (NYSE: VLTO) provides water analytics and treatment solutions.
Why Does VLTO Fall Short?
- Annual revenue growth of 4.4% over the last four years was below our standards for the industrials sector
- Anticipated sales growth of 6.5% for the next year implies demand will be shaky
At $83.00 per share, Veralto trades at 20x forward P/E. To fully understand why you should be careful with VLTO, check out our full research report (it’s free).
Toll Brothers (TOL)
Market Cap: $13.76 billion
Started by two brothers who started by building and selling just one home in Pennsylvania, today Toll Brothers (NYSE: TOL) is a luxury homebuilder across the United States.
Why Does TOL Worry Us?
- Demand cratered as it couldn’t win new orders over the past two years, leading to an average 9.1% decline in its backlog
- Projected sales decline of 2.9% for the next 12 months points to a tough demand environment ahead
- Earnings per share have contracted by 5.7% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
Toll Brothers’s stock price of $162.13 implies a valuation ratio of 12.4x forward P/E. Read our free research report to see why you should think twice about including TOL in your portfolio.
Labcorp (LH)
Market Cap: $21.75 billion
With over 600 million tests performed annually and involvement in 90% of FDA-approved drugs in 2023, Labcorp (NYSE: LH) provides laboratory testing services and drug development solutions to doctors, hospitals, pharmaceutical companies, and patients worldwide.
Why Does LH Give Us Pause?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 1.6% annually over the last five years
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Sales were less profitable over the last five years as its earnings per share fell by 11.1% annually, worse than its revenue declines
Labcorp is trading at $266.27 per share, or 14.5x forward P/E. Check out our free in-depth research report to learn more about why LH doesn’t pass our bar.
Stocks We Like More
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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.
