Large trillion-dollar companies are tightening their grip on the market, often by acquiring smaller rivals. This trend will likely pick up with new regulatory leadership, but a few mid-sized businesses will continue prospering by anchoring themselves in unique market segments.
Finding these diamonds in the rough is hard, and we started StockStory to help. That said, here are three of our favorite mid-cap stocks that could end up being the next big thing.
Insulet (PODD)
Market Cap: $10.19 billion
Revolutionizing diabetes care with its tubeless "Pod" technology, Insulet (NASDAQ: PODD) develops and manufactures innovative insulin delivery systems for people with diabetes, primarily through its Omnipod product line.
What Makes PODD Stand Out?
- Constant currency growth averaged 26.7% over the past two years, showing it can expand globally regardless of the macroeconomic environment
- Free cash flow margin expanded by 19.9 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
- Returns on capital are growing as management capitalizes on its market opportunities
Insulet is trading at $149.56 per share, or 22x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Tenet Healthcare (THC)
Market Cap: $21.95 billion
With a network spanning nine states and serving primarily urban and suburban communities, Tenet Healthcare (NYSE: THC) operates a nationwide network of hospitals, ambulatory surgery centers, and outpatient facilities providing acute care and specialty healthcare services.
Why Are We Positive on THC?
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 18.6% exceeded its revenue gains over the last five years
- Free cash flow margin increased by 11.7 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- Rising returns on capital show management is finding more attractive investment opportunities
At $274.50 per share, Tenet Healthcare trades at 13x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Instacart (CART)
Market Cap: $11.82 billion
Powering more than one billion grocery orders since its founding, Instacart (NASDAQ: CART) is an online grocery shopping and delivery platform that partners with retailers to help customers shop from local stores through its app or website.
Why Will CART Beat the Market?
- Superior platform functionality and low servicing costs lead to a premier gross margin of 73.6%
- Healthy EBITDA margin of 28.9% shows it’s a well-run company with efficient processes, and its operating leverage amplified its profits over the last few years
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its recently improved profitability means it has even more resources to invest or distribute
Instacart’s stock price of $51.45 implies a valuation ratio of 8.5x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
