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. That said, here is one mid-cap stock with massive growth potential and two best left ignored.
Two Mid-Cap Stocks to Sell:
Zillow (ZG)
Market Cap: $21.6 billion
Founded by Expedia co-founders Lloyd Frink and Rich Barton, Zillow (NASDAQ: ZG) is the leading U.S. online real estate marketplace.
Why Do We Avoid ZG?
- Sales tumbled by 7.8% annually over the last five years, showing consumer trends are working against its favor
- Poor expense management has led to operating margin losses
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
Zillow is trading at $85.84 per share, or 45.9x forward P/E. Dive into our free research report to see why there are better opportunities than ZG.
TransUnion (TRU)
Market Cap: $18.01 billion
One of the three major credit bureaus in the United States alongside Equifax and Experian, TransUnion (NYSE: TRU) is a global information and insights company that provides credit reports, fraud prevention tools, and data analytics to help businesses make decisions and consumers manage their financial health.
Why Are We Hesitant About TRU?
- Efficiency has decreased over the last five years as its adjusted operating margin fell by 3 percentage points
- Free cash flow margin shrank by 8.9 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Low returns on capital reflect management’s struggle to allocate funds effectively, and its decreasing returns suggest its historical profit centers are aging
At $92.46 per share, TransUnion trades at 21x forward P/E. If you’re considering TRU for your portfolio, see our FREE research report to learn more.
One Mid-Cap Stock to Buy:
SouthState (SSB)
Market Cap: $10.47 billion
With roots dating back to the Great Depression era of 1933, SouthState (NYSE: SSB) is a financial holding company that provides banking services, wealth management, and correspondent banking services across six southeastern states.
Why Is SSB a Top Pick?
- Annual net interest income growth of 31% over the past five years was outstanding, reflecting market share gains this cycle
- Expected net interest income growth of 24.5% for the next year suggests its market share will rise
- Earnings growth has trumped its peers over the last two years as its EPS has compounded at 6.1% annually
SouthState’s stock price of $103.45 implies a valuation ratio of 1.2x forward P/B. Is now a good time to buy? See for yourself in our full 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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