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.
This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. That said, here are two mid-cap stocks with long growth runways and one that may have trouble.
One Mid-Cap Stock to Sell:
DocuSign (DOCU)
Market Cap: $9.90 billion
Creating the digital equivalent of "sign on the dotted line" for over a billion users worldwide, DocuSign (NASDAQ:DOCU) provides an agreement management platform that enables businesses to electronically prepare, sign, and manage documents and contracts.
Why Do We Avoid DOCU?
- Average ARR growth of 8.8% over the last year has disappointed, suggesting it’s had a hard time winning long-term deals and renewals
- Customer acquisition costs take a while to recoup, making it difficult to justify sales and marketing investments that could increase revenue
- Operating profits and efficiency rose over the last year as it benefited from some fixed cost leverage
DocuSign is trading at $48.52 per share, or 2.9x forward price-to-sales. To fully understand why you should be careful with DOCU, check out our full research report (it’s free).
Two Mid-Cap Stocks to Watch:
Globus Medical (GMED)
Market Cap: $10.86 billion
With operations spanning 64 countries and a portfolio of over 10 new products launched in 2023 alone, Globus Medical (NYSE:GMED) develops and sells implantable devices, surgical instruments, and technology solutions for spine, orthopedic, and neurosurgical procedures.
Why Are We Fans of GMED?
- Annual revenue growth of 30.3% over the past five years was outstanding, reflecting market share gains this cycle
- Business is well-positioned no matter the global macroeconomic backdrop as its constant currency revenue growth averaged 22.8% over the past two years
- Earnings per share have massively outperformed its peers over the last five years, increasing by 22.2% annually
Globus Medical’s stock price of $80.75 implies a valuation ratio of 16.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
RB Global (RBA)
Market Cap: $19.66 billion
Born from the 1958 founding of Ritchie Bros. Auctioneers and rebranded in 2023, RB Global (NYSE:RBA) operates global marketplaces that connect buyers and sellers of commercial assets, vehicles, and equipment across multiple industries.
Why Are We Positive on RBA?
- Annual revenue growth of 26.9% over the past five years was outstanding, reflecting market share gains this cycle
- Adjusted operating margin expanded by 2.5 percentage points over the last five years as it scaled and became more efficient
- Earnings per share grew by 19.1% annually over the last five years, massively outpacing its peers
At $105.53 per share, RB Global trades at 22.2x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.