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.
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 massive growth potential and one best left ignored.
One Mid-Cap Stock to Sell:
Service International (SCI)
Market Cap: $11.35 billion
Founded in 1962, Service International (NYSE: SCI) is a leading provider of death care products and services in North America.
Why Do We Steer Clear of SCI?
- Performance surrounding its funeral services performed has lagged its peers
- Low free cash flow margin of 13.1% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
Service International is trading at $81.55 per share, or 19.4x forward P/E. To fully understand why you should be careful with SCI, check out our full research report (it’s free).
Two Mid-Cap Stocks to Watch:
Atlassian (TEAM)
Market Cap: $22.05 billion
Started by two Australian university friends who funded their startup with credit cards, Atlassian (NASDAQ: TEAM) provides software tools that help teams plan, track, collaborate, and share knowledge across organizations.
Why Does TEAM Stand Out?
- Market share has increased as its 21.6% annual revenue growth over the last two years was exceptional
- Prominent and differentiated software culminates in a top-tier gross margin of 84.1%
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
At $83.74 per share, Atlassian trades at 3.2x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
SoFi (SOFI)
Market Cap: $24.1 billion
Starting as a student loan refinancing company founded by Stanford business school students in 2011, SoFi Technologies (NASDAQ: SOFI) operates a digital financial platform offering lending, banking, investing, and other financial services to help members borrow, save, spend, invest, and protect their money.
Why Will SOFI Beat the Market?
- Annual revenue growth of 31.6% over the last two years was superb and indicates its market share increased during this cycle
- Additional sales over the last two years increased its profitability as the 148% annual growth in its earnings per share outpaced its revenue
SoFi’s stock price of $18.55 implies a valuation ratio of 31.9x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
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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.
