3 Mid-Cap Stocks Walking a Fine Line

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. That said, here are three mid-cap stocks to swipe left on and some alternatives you should look into instead.

Charter (CHTR)

Market Cap: $17.11 billion

Operating as Spectrum, Charter (NASDAQ:CHTR) is a leading telecommunications company offering cable television, high-speed internet, and voice services across the United States.

Why Do We Pass on CHTR?

1. Sluggish trends in its internet subscribers suggest customers aren’t adopting its solutions as quickly as the company hoped
2. Free cash flow margin is anticipated to expand by 1.9 percentage points over the next year, providing additional flexibility for investments and share buybacks/dividends
3. Unchanged returns on capital make it difficult for the company’s valuation multiple to re-rate

At $130.68 per share, Charter trades at 3x forward P/E. Read our free research report to see why you should think twice about including CHTR in your portfolio.

Moderna (MRNA)

Market Cap: $19.7 billion

Rising to global prominence during the COVID-19 pandemic with one of the first effective vaccines, Moderna (NASDAQ:MRNA) develops messenger RNA (mRNA) medicines that direct the body's cells to produce proteins with therapeutic or preventive benefits for various diseases.

Why Do We Avoid MRNA?

1. Sales tumbled by 34.3% annually over the last two years, showing market trends are working against it during this cycle
2. Sales were less profitable over the last five years as its earnings per share fell by 46.5% annually, worse than its revenue declines
3. Free cash flow margin dropped by 129.7 percentage points over the last five years, implying the company became more capital intensive as competition picked up

Moderna is trading at $59.71 per share, or 12.4x forward price-to-sales. Check out our free in-depth research report to learn more about why MRNA doesn’t pass our bar.

Franklin Resources (BEN)

Market Cap: $16.53 billion

Operating under the widely recognized Franklin Templeton brand since 1947, Franklin Resources (NYSE:BEN) is a global investment management organization that offers financial services and solutions to individuals, institutions, and wealth advisors worldwide.

Why Is BEN Risky?

1. Sales trends were unexciting over the last five years as its 5.4% annual growth was below the typical financials company
2. Incremental sales over the last five years were much less profitable as its earnings per share fell by 1.6% annually while its revenue grew
3. Low return on equity reflects management’s struggle to allocate funds effectively

Franklin Resources’s stock price of $32.80 implies a valuation ratio of 11.5x forward P/E. Dive into our free research report to see why there are better opportunities than BEN.

Stocks We Like More

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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.