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.
Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. That said, here are two mid-cap stocks with massive growth potential and one that may have trouble.
One Mid-Cap Stock to Sell:
Assurant (AIZ)
Market Cap: $12.92 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 Fall Short?
- Net premiums earned only expanded by 5.2% annually over the last five years, trailing its insurance peers as its scale limited incremental business
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 15.6% annually
- Annual book value per share growth of 4.4% over the last five years lagged behind its insurance peers as its large balance sheet made it difficult to generate incremental capital growth
At $261.80 per share, Assurant trades at 2.1x forward P/B. Dive into our free research report to see why there are better opportunities than AIZ.
Two Mid-Cap Stocks to Watch:
FTAI Aviation (FTAI)
Market Cap: $17.93 billion
With a focus on the CFM56 engine that powers Boeing and Airbus’s planes, FTAI Aviation (NASDAQ: FTAI) sells, leases, maintains, and repairs aircraft engines.
Why Will FTAI Beat the Market?
- Annual revenue growth of 50.5% over the past two years was outstanding, reflecting market share gains this cycle
- Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 35.1% annually
- Cash burn has decreased over the last five years, showing the company is becoming a more self-sustaining business
FTAI Aviation’s stock price of $176.06 implies a valuation ratio of 13.2x forward EV-to-EBITDA. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Xylem (XYL)
Market Cap: $23.97 billion
Formed through a spinoff, Xylem (NYSE: XYL) manufactures and services engineered products across a wide variety of applications primarily in the water sector.
Why Does XYL Stand Out?
- Impressive 11.9% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Share repurchases over the last two years enabled its annual earnings per share growth of 16.3% to outpace its revenue gains
- Free cash flow margin grew by 7.8 percentage points over the last five years, giving the company more chips to play with
Xylem is trading at $103.39 per share, or 18.5x forward P/E. Is now the right 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 Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
