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.
Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. 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:
Snap-on (SNA)
Market Cap: $19.7 billion
Founded in 1920, Snap-on (NYSE:SNA) is a global provider of tools, equipment, and diagnostics for various industries such as vehicle repair, aerospace, and the military.
Why Does SNA Worry Us?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Earnings per share were flat over the last two years and fell short of the peer group average
- Eroding returns on capital suggest its historical profit centers are aging
Snap-on is trading at $380.38 per share, or 3.8x forward price-to-sales. Read our free research report to see why you should think twice about including SNA in your portfolio.
Two Mid-Cap Stocks to Watch:
Texas Roadhouse (TXRH)
Market Cap: $10.42 billion
With locations often featuring Western-inspired decor, Texas Roadhouse (NASDAQ:TXRH) is an American restaurant chain specializing in Southern-style cuisine and steaks.
Why Do We Like TXRH?
- Offensive push to build new restaurants and attack its untapped market opportunities is backed by its same-store sales growth
- Average same-store sales growth of 6.7% over the past two years indicates its restaurants are resonating with diners
- ROIC punches in at 21%, illustrating management’s expertise in identifying profitable investments
At $158.19 per share, Texas Roadhouse trades at 25.6x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
ATI (ATI)
Market Cap: $21.19 billion
With its materials flying in nearly every commercial and military aircraft in service today, ATI (NYSE:ATI) produces highly specialized materials and components for aerospace, defense, medical, and energy applications using advanced metallurgy and manufacturing processes.
Why Will ATI Outperform?
- Market share has increased this cycle as its 11.1% annual revenue growth over the last five years was exceptional
- Share repurchases over the last two years enabled its annual earnings per share growth of 24.8% to outpace its revenue gains
- Free cash flow margin grew by 21.7 percentage points over the last five years, giving the company more chips to play with
ATI’s stock price of $157.87 implies a valuation ratio of 33.9x forward P/E. Is now a good time to buy? Find out in our full 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.
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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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.