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. Keeping that in mind, here are two mid-cap stocks with massive growth potential and one that may have trouble.
One Mid-Cap Stock to Sell:
JLL (JLL)
Market Cap: $13.82 billion
Founded in 1999 through the merger of Jones Lang Wootton and LaSalle Partners, JLL (NYSE: JLL) is a company specializing in real estate advisory and investment management services.
Why Do We Avoid JLL?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 10.1% over the last five years was below our standards for the consumer discretionary sector
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
- Returns on capital haven’t budged, indicating management couldn’t drive additional value creation
JLL’s stock price of $292.75 implies a valuation ratio of 12.6x forward P/E. If you’re considering JLL for your portfolio, see our FREE research report to learn more.
Two Mid-Cap Stocks to Watch:
Five Below (FIVE)
Market Cap: $11.17 billion
Often facilitating a treasure hunt shopping experience, Five Below (NASDAQ: FIVE) is an American discount retailer that sells a variety of products from mobile phone cases to candy to sports equipment for largely $5 or less.
Why Are We Positive on FIVE?
- Fast expansion of new stores to reach markets with few or no locations is justified by its same-store sales growth
- Comparable store sales rose by 8% on average over the past two years, demonstrating its ability to drive increased spending at existing locations
- Notable projected revenue growth of 10.1% for the next 12 months hints at market share gains
At $192.50 per share, Five Below trades at 21.8x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
ITT (ITT)
Market Cap: $16.54 billion
Playing a crucial role in the development of the first transatlantic television transmission in 1956, ITT (NYSE: ITT) provides motion and fluid handling equipment for various industries
Why Is ITT a Good Business?
- Market share has increased this cycle as its 11.7% annual revenue growth over the last two years was exceptional
- Projected revenue growth of 33.2% for the next 12 months is above its two-year trend, pointing to accelerating demand
- Free cash flow margin jumped by 18.2 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
ITT is trading at $199.20 per share, or 24.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
