2 Mid-Cap Stocks on Our Buy List and 1 We Turn Down

Barchart·05/29/2026 03:34:22

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.

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 are two mid-cap stocks with massive growth potential and one that may have trouble.

One Mid-Cap Stock to Sell:

United Therapeutics (UTHR)

Market Cap: $23.86 billion

Founded by a mother seeking treatment for her daughter's pulmonary arterial hypertension, United Therapeutics (NASDAQ:UTHR) develops and commercializes medications for chronic lung diseases and other life-threatening conditions, with a focus on pulmonary hypertension treatments.

Why Does UTHR Fall Short?

1. Annual sales declines of 11.9% for the past five years show its products and services struggled to connect with the market during this cycle
2. Subscale operations are evident in its revenue base of $800.5 million, meaning it has fewer distribution channels than its larger rivals

United Therapeutics is trading at $565.50 per share, or 12.3x forward price-to-sales. Dive into our free research report to see why there are better opportunities than UTHR.

Two Mid-Cap Stocks to Buy:

Nova (NVMI)

Market Cap: $16.08 billion

Headquartered in Israel, Nova (NASDAQ:NVMI) is a provider of quality control systems used in semiconductor manufacturing.

Why Should You Buy NVMI?

1. Market share has increased this cycle as its 30.8% annual revenue growth over the last two years was exceptional
2. Excellent operating margin of 28.8% highlights the efficiency of its business model, and it turbocharged its profits by achieving some fixed cost leverage
3. Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 30.9% annually

Nova’s stock price of $508.50 implies a valuation ratio of 45.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Synchrony Financial (SYF)

Market Cap: $24.04 billion

Powering over 73 million active accounts and partnerships with major brands like Amazon, PayPal, and Lowe's, Synchrony Financial (NYSE:SYF) provides credit cards, installment loans, and banking products through partnerships with retailers, healthcare providers, and digital platforms.

Why Are We Bullish on SYF?

1. Earnings per share have massively outperformed its peers over the last two years, increasing by 37.9% annually
2. Annual tangible book value per share growth of 15.9% over the last five years was superb and indicates its capital strength increased during this cycle
3. Market-beating return on equity illustrates that management has a knack for investing in profitable ventures

At $70.51 per share, Synchrony Financial trades at 7.5x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

Stocks We Like Even More

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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.

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