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.
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 three mid-cap stocks to swipe left on and some alternatives you should look into instead.
Unity (U)
Market Cap: $14.67 billion
Powering over half of the world's mobile games and expanding into industries from automotive to architecture, Unity (NYSE: U) provides software tools and services that allow developers to create, run, and monetize interactive 2D and 3D content across multiple platforms.
Why Do We Think U Will Underperform?
- Customers had second thoughts about committing to its platform over the last year as its billings averaged 6% declines
- Extended payback periods on sales investments suggest the company’s platform isn’t resonating enough to drive efficient sales conversions
- Suboptimal cost structure is highlighted by its history of operating margin losses
Unity’s stock price of $34.30 implies a valuation ratio of 7.7x forward price-to-sales. To fully understand why you should be careful with U, check out our full research report (it’s free for active Edge members).
GameStop (GME)
Market Cap: $10.27 billion
Drawing gaming fans with demo units set up with the latest releases, GameStop (NYSE: GME) sells new and used video games, consoles, and accessories, as well as pop culture merchandise.
Why Do We Avoid GME?
- GameStop’s brick-and-mortar engine keeps stalling as gamers migrate to digital downloads, and management is closing more outlets after shuttering hundreds of stores last year
- The share price remains an unpredictable meme-stock roller-coaster, and the purchase of thousands of Bitcoins have fueled huge swings
- On the bright side, the company has a large cash pile that gives CEO Ryan Cohen room to buy more Bitcoin or fund its collectibles and trading-card push
GameStop is trading at $23.01 per share, or 26.4x forward P/E. Check out our free in-depth research report to learn more about why GME doesn’t pass our bar.
Hyatt Hotels (H)
Market Cap: $13.77 billion
Founded in 1957, Hyatt Hotels (NYSE: H) is a global hospitality company with a portfolio of 20 premier brands and over 950 properties across 65 countries.
Why Are We Hesitant About H?
- Revenue per room has underperformed over the past two years, suggesting it may need to develop new facilities
- Operating margin of 4.9% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments
- Push for growth has led to negative returns on capital, signaling value destruction
At $144.20 per share, Hyatt Hotels trades at 47.8x forward P/E. If you’re considering H for your portfolio, see our FREE research report to learn more.
Stocks We Like More
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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