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. Keeping that in mind, here is one mid-cap stock with massive growth potential and two that may have trouble.

Two Mid-Cap Stocks to Sell:

Hasbro (HAS)

Market Cap: $12.91 billion

Credited with the creation of toys such as Mr. Potato Head and the Rubik’s Cube, Hasbro (NASDAQ: HAS) is a global entertainment company offering a diverse range of toys, games, and multimedia experiences for children and families.

Why Do We Steer Clear of HAS?

1. Sales tumbled by 3.5% annually over the last five years, showing consumer trends are working against it
2. Poor expense management has led to an operating margin of 9.7% that is below the industry average
3. Earnings growth underperformed the sector average over the last five years as its EPS grew by just 2.7% annually

Hasbro is trading at $91.57 per share, or 14.8x forward P/E. If you’re considering HAS for your portfolio, see our FREE research report to learn more.

Labcorp (LH)

Market Cap: $25.27 billion

With over 600 million tests performed annually and involvement in 90% of FDA-approved drugs in 2023, Labcorp (NYSE: LH) provides laboratory testing services and drug development solutions to doctors, hospitals, pharmaceutical companies, and patients worldwide.

Why Are We Wary of LH?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 2.6% annually over the last five years
2. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
3. Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 12.4% annually, worse than its revenue

At $311.68 per share, Labcorp trades at 16.2x forward P/E. Check out our free in-depth research report to learn more about why LH doesn’t pass our bar.

One Mid-Cap Stock to Watch:

Toast (TOST)

Market Cap: $18.57 billion

Born from the frustrations of three friends waiting too long for their restaurant bill, Toast (NYSE: TOST) provides a cloud-based digital technology platform with software, payment processing, and hardware solutions built specifically for restaurants.

Why Are We Fans of TOST?

1. ARR trends over the last year show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
2. Estimated revenue growth of 19.9% for the next 12 months implies its momentum over the last two years will continue

Toast’s stock price of $32.20 implies a valuation ratio of 2.3x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.