1 Mid-Cap Stock on Our Buy List and 2 We Ignore

Many investors pay attention to mid-cap stocks because they have established business models and expansive market opportunities. However, their paths to becoming $100 billion corporations are ripe with competition, ranging from giants with vast resources to agile upstarts eager to disrupt the status quo.

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. Keeping that in mind, here is one mid-cap stock with huge upside potential and two that could be down big.

Two Mid-Cap Stocks to Sell:

Fortive (FTV)

Market Cap: $17.97 billion

Taking its name from the Latin root of "strong", Fortive (NYSE:FTV) manufactures products and develops industrial software for numerous industries.

Why Do We Steer Clear of FTV?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 2.1% annually over the last five years
2. Flat earnings per share over the last five years underperformed the sector average
3. Low returns on capital reflect management’s struggle to allocate funds effectively, and its decreasing returns suggest its historical profit centers are aging

Fortive’s stock price of $58.36 implies a valuation ratio of 20.3x forward P/E. Dive into our free research report to see why there are better opportunities than FTV.

Penumbra (PEN)

Market Cap: $12.97 billion

Founded in 2004 to address challenging medical conditions with significant unmet needs, Penumbra (NYSE:PEN) develops and manufactures innovative medical devices for treating vascular diseases and providing immersive healthcare rehabilitation solutions.

Why Does PEN Give Us Pause?

1. Subscale operations are evident in its revenue base of $1.40 billion, meaning it has fewer distribution channels than its larger rivals
2. Low returns on capital reflect management’s struggle to allocate funds effectively

At $329.83 per share, Penumbra trades at 65.2x forward P/E. If you’re considering PEN for your portfolio, see our FREE research report to learn more.

One Mid-Cap Stock to Buy:

RB Global (RBA)

Market Cap: $19.21 billion

Born from the 1958 founding of Ritchie Bros. Auctioneers and rebranded in 2023, RB Global (NYSE:RBA) operates global marketplaces that connect buyers and sellers of commercial assets, vehicles, and equipment across multiple industries.

Why Are We Bullish on RBA?

1. Market share has increased this cycle as its 27.2% annual revenue growth over the last five years was exceptional
2. Earnings per share grew by 18.9% annually over the last five years and trumped its peers
3. Strong free cash flow margin of 15.5% enables it to reinvest or return capital consistently

RB Global is trading at $103.30 per share, or 22.7x 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.