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 two mid-cap stocks with long growth runways and one best left ignored.
One Mid-Cap Stock to Sell:
Cincinnati Financial (CINF)
Market Cap: $26.41 billion
Founded in 1950 by independent insurance agents seeking stable market options for their clients, Cincinnati Financial (NASDAQ:CINF) provides property casualty insurance, life insurance, and related financial services through independent agencies across 46 states.
Why Are We Cautious About CINF?
- Day-to-day expenses have swelled relative to revenue over the last five years as its pre-tax profit margin fell by 16.2 percentage points
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 18.4% annually
- Estimated book value per share growth of 4.8% for the next 12 months implies profitability will slow from its two-year trend
Cincinnati Financial is trading at $170.67 per share, or 1.5x forward P/B. Dive into our free research report to see why there are better opportunities than CINF.
Two Mid-Cap Stocks to Watch:
HubSpot (HUBS)
Market Cap: $12.5 billion
Born from the idea that traditional interruptive marketing was becoming less effective, HubSpot (NYSE:HUBS) provides an integrated platform that helps businesses attract, engage, and manage customer relationships through marketing, sales, service, and content management tools.
Why Are We Positive on HUBS?
- Impressive 20% annual revenue growth over the last two years indicates it’s winning market share
- Customers view its software as mission-critical to their operations as its ARR has averaged 21.3% growth over the last year
- Prominent and differentiated software results in a premier gross margin of 83.2%
At $249.88 per share, HubSpot trades at 3x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
Applied Industrial (AIT)
Market Cap: $12.14 billion
Formerly called The Ohio Ball Bearing Company, Applied Industrial (NYSE:AIT) distributes industrial products–everything from power tools to industrial valves–and services to a wide variety of industries.
Why Do We Watch AIT?
- Share buybacks catapulted its annual earnings per share growth to 24.4%, which outperformed its revenue gains over the last five years
- Free cash flow margin grew by 4.8 percentage points over the last five years, giving the company more chips to play with
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
Applied Industrial’s stock price of $330.81 implies a valuation ratio of 27.7x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.