1 Mid-Cap Stock Worth Your Attention and 2 We Question
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.
This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. That said, here is one mid-cap stock with huge upside potential and two that could be down big.
Created from the 2016 merger of Quintiles (a clinical research organization) and IMS Health (a healthcare data specialist), IQVIA (NYSE:IQV) provides clinical research services, data analytics, and technology solutions to help pharmaceutical companies develop and market medications more effectively.
Annual sales growth of 5.1% over the last two years lagged behind its healthcare peers as its large revenue base made it difficult to generate incremental demand
Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn't resonate with customers
Expenses have increased as a percentage of revenue over the last two years as its adjusted operating margin fell by 1.1 percentage points
At $172.13 per share, IQVIA trades at 13.3x forward P/E. If you're considering IQV for your portfolio, see our FREE research report to learn more.
With roots dating back to 1898 and a significant expansion through its 2023 acquisition of Silicon Valley Bank, First Citizens BancShares (NASDAQGS:FCNC.A) is a bank holding company that provides financial services to individuals and businesses through its First-Citizens Bank & Trust Company subsidiary.
Customers postponed purchases of its products and services this cycle as its revenue declined by 3.7% annually over the last two years
Concessions to defend its market share have ramped up over the last two years as its net interest margin decreased by 74.8 basis points (100 basis points = 1 percentage point)
Sales were less profitable over the last two years as its earnings per share fell by 5.6% annually, worse than its revenue declines
First Citizens BancShares's stock price of $1,909 implies a valuation ratio of 1x forward P/B. Dive into our free research report to see why there are better opportunities than FCNCA.
Formed through the split of IT services company SAIC, Leidos (NYSE:LDOS) offers technology and engineering solutions such as military training systems for the defense, civil, and health markets.
Average backlog growth of 17.6% over the past two years shows it has a steady sales pipeline that will drive future orders
Share buybacks catapulted its annual earnings per share growth to 22.4%, which outperformed its revenue gains over the last two years
Free cash flow margin jumped by 5.1 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Leidos is trading at $124.50 per share, or 10.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it's free.
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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.