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.

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 is one mid-cap stock with massive growth potential and two that could be down big.

Two Mid-Cap Stocks to Sell:

Walgreens (WBA)

Market Cap: $10.56 billion

Primarily offering prescription medicine, health, and beauty products, Walgreens Boots Alliance (NASDAQ: WBA) is a pharmacy chain formed through the 2014 major merger of American company Walgreens and European company Alliance Boots.

Why Is WBA Not Exciting?

1. Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 3.8% over the last six years was below our standards for the consumer retail sector
2. Gross margin of 17.7% is an output of its commoditized inventory
3. High net-debt-to-EBITDA ratio of 6× increases the risk of forced asset sales or dilutive financing if operational performance weakens

At $12.16 per share, Walgreens trades at 8.3x forward P/E. Check out our free in-depth research report to learn more about why WBA doesn’t pass our bar.

Assurant (AIZ)

Market Cap: $10.87 billion

With roots dating back to 1892 when it was founded by a Civil War veteran, Assurant (NYSE: AIZ) provides specialized insurance products and services that protect major consumer purchases like mobile devices, vehicles, homes, and appliances.

Why Does AIZ Worry Us?

1. Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 4.4% for the last five years
2. Outsized scale creates growth headwinds as its 4.7% annualized net premiums earned increases over the last five years underperformed other financial institutions
3. Sizable asset base leads to capital growth challenges as its 1.4% annual book value per share increases over the last five years fell short of other insurance companies

Assurant is trading at $215.40 per share, or 1.9x forward P/B. If you’re considering AIZ for your portfolio, see our FREE research report to learn more.

One Mid-Cap Stock to Watch:

Tenet Healthcare (THC)

Market Cap: $16.07 billion

With a network spanning nine states and serving primarily urban and suburban communities, Tenet Healthcare (NYSE: THC) operates a nationwide network of hospitals, ambulatory surgery centers, and outpatient facilities providing acute care and specialty healthcare services.

Why Do We Like THC?

1. Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
2. Industry-leading 21.3% return on capital demonstrates management’s skill in finding high-return investments, and its rising returns show it’s making even more lucrative bets
3. Returns on capital are growing as management capitalizes on its market opportunities

Tenet Healthcare’s stock price of $182.21 implies a valuation ratio of 14x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

High-Quality Stocks for All Market Conditions

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

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