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.
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 long growth runways and one that may have trouble.
One Mid-Cap Stock to Sell:
AeroVironment (AVAV)
Market Cap: $10.03 billion
Focused on the future of autonomous military combat, AeroVironment (NASDAQ: AVAV) specializes in advanced unmanned aircraft systems and electric vehicle charging solutions.
Why Do We Think Twice About AVAV?
- Costs have risen faster than its revenue over the last five years, causing its operating margin to decline by 15.3 percentage points
- Earnings per share fell by 8.4% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
- 6.3 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
AeroVironment’s stock price of $198.98 implies a valuation ratio of 50.3x forward P/E. Check out our free in-depth research report to learn more about why AVAV doesn’t pass our bar.
Two Mid-Cap Stocks to Watch:
BWX (BWXT)
Market Cap: $20.35 billion
Contributing components and materials to the famous Manhattan Project in the 1940s, BWX (NYSE: BWXT) is a manufacturer and service provider of nuclear components and fuel for government and commercial industries.
Why Is BWXT on Our Radar?
- Annual revenue growth of 13.2% over the last two years was superb and indicates its market share increased during this cycle
- Projected revenue growth of 17.5% for the next 12 months is above its two-year trend, pointing to accelerating demand
- Free cash flow margin jumped by 5.7 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
At $223.50 per share, BWX trades at 44.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Synchrony Financial (SYF)
Market Cap: $23.51 billion
Powering over 73 million active accounts and partnerships with major brands like Amazon, PayPal, and Lowe's, Synchrony Financial (NYSE: SYF) provides credit cards, installment loans, and banking products through partnerships with retailers, healthcare providers, and digital platforms.
Why Is SYF a Top Pick?
- Share buybacks catapulted its annual earnings per share growth to 33%, which outperformed its revenue gains over the last two years
- Balance sheet strength has increased this cycle as its 17.4% annual tangible book value per share growth over the last five years was exceptional
- ROE punches in at 22.8%, illustrating management’s expertise in identifying profitable investments
Synchrony Financial is trading at $66.92 per share, or 7.2x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it's flagging for this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
