Mid-cap stocks often strike the right balance between having proven business models and market opportunities that can support $100 billion corporations. However, they face intense competition from scaled industry giants and can be disrupted by new innovative players vying for a slice of the pie.
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 are two mid-cap stocks with huge upside potential and one best left ignored.
One Mid-Cap Stock to Sell:
Aramark (ARMK)
Market Cap: $10.41 billion
From serving hot dogs at major league stadiums to managing college dining halls that feed thousands daily, Aramark (NYSE:ARMK) provides food services and facilities management to schools, healthcare facilities, businesses, sports venues, and correctional institutions across 16 countries.
Why Are We Cautious About ARMK?
- Sales stagnated over the last two years and signal the need for new growth strategies
- Earnings per share fell by 31% annually over the last two years while its revenue was flat, showing each sale was less profitable
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
At $39.62 per share, Aramark trades at 17.7x forward P/E. To fully understand why you should be careful with ARMK, check out our full research report (it’s free).
Two Mid-Cap Stocks to Watch:
Dycom (DY)
Market Cap: $11.11 billion
Working alongside some of the most popular mobile carriers in the world, Dycom (NYSE:DY) builds and maintains telecommunications infrastructure.
Why Are We Bullish on DY?
- Annual revenue growth of 11.8% over the past two years was outstanding, reflecting market share gains this cycle
- Operating margin improvement of 5.9 percentage points over the last five years demonstrates its ability to scale efficiently
- Share buybacks catapulted its annual earnings per share growth to 33.3%, which outperformed its revenue gains over the last five years
Dycom is trading at $370.59 per share, or 28.6x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
EPAM (EPAM)
Market Cap: $11.75 billion
Founded in 1993 during the early days of offshore software development, EPAM Systems (NYSE:EPAM) provides digital engineering, cloud, and AI transformation services to help global enterprises and startups modernize their technology systems and create digital products.
Why Could EPAM Be a Winner?
- Revenue base of $5.30 billion gives it economies of scale and some distribution advantages
- Robust free cash flow margin of 10.5% gives it many options for capital deployment
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
EPAM’s stock price of $212.67 implies a valuation ratio of 17.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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.