Mid-cap stocks have the best odds of scaling into $100 billion corporations thanks to their tested business models and large addressable markets. But the many opportunities in front of them attract significant competition, spanning from industry behemoths with seemingly infinite resources to small, nimble players with chips on their shoulders.
This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. Keeping that in mind, here are two mid-cap stocks with huge upside potential and one that may have trouble.
One Mid-Cap Stock to Sell:
Otis (OTIS)
Market Cap: $29.02 billion
Credited with inventing the first hydraulic passenger elevator, Otis Worldwide (NYSE:OTIS) is an elevator and escalator manufacturing, installation and service company.
Why Do We Pass on OTIS?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Estimated sales growth of 4.4% for the next 12 months is soft and implies weaker demand
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 5.4% annually
Otis’s stock price of $76.02 implies a valuation ratio of 17.8x forward P/E. Dive into our free research report to see why there are better opportunities than OTIS.
Two Mid-Cap Stocks to Buy:
Hubbell (HUBB)
Market Cap: $26.83 billion
A respected player in the electrical segment, Hubbell (NYSE:HUBB) manufactures electronic products for the construction, industrial, utility, and telecommunications markets.
Why Are We Backing HUBB?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 10.2% annual sales growth over the last five years
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Free cash flow margin jumped by 7.2 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Hubbell is trading at $509.43 per share, or 25.5x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
Evercore (EVR)
Market Cap: $12.92 billion
Founded in 1995 as a boutique advisory firm focused on independence and client trust, Evercore (NYSE:EVR) is an independent investment banking firm that provides strategic advisory, capital markets, and wealth management services to corporations, financial sponsors, and high-net-worth individuals.
Why Do We Love EVR?
- Impressive 36.6% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Additional sales over the last two years increased its profitability as the 70.2% annual growth in its earnings per share outpaced its revenue
- Industry-leading 33.3% return on equity demonstrates management’s skill in finding high-return investments
At $326.25 per share, Evercore trades at 17.7x 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.