1 Mid-Cap Stock Worth Your Attention and 2 We Turn Down

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 is one mid-cap stock with massive growth potential and two best left ignored.

Two Mid-Cap Stocks to Sell:

Lumen (LUMN)

Market Cap: $9.96 billion

With approximately 350,000 route miles of fiber optic cable spanning North America and the Asia Pacific, Lumen Technologies (NYSE:LUMN) operates a vast fiber optic network that provides communications, cloud connectivity, security, and IT solutions to businesses and consumers.

Why Do We Think LUMN Will Underperform?

Customers postponed purchases of its products and services this cycle as its revenue declined by 10% annually over the last five years Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 17.8% annually, worse than its revenue 7.3 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

Lumen is trading at $9.67 per share, or 0.9x forward price-to-sales. Check out our free in-depth research report to learn more about why LUMN doesn’t pass our bar.

Globe Life (GL)

Market Cap: $12.22 billion

With roots dating back to 1900 and a rebranding from Torchmark Corporation in 2019, Globe Life (NYSE:GL) is an insurance holding company that offers life insurance, supplemental health insurance, and annuity products through various distribution channels.

Why Is GL Not Exciting?

4.5% annual revenue growth over the last two years was slower than its insurance peers Growth in insurance policies was lackluster over the last two years as its 4.9% annual growth underperformed the typical financial institution Products and services are facing profitability challenges during this cycle, as seen in its flat book value per share over the last five years

At $151.07 per share, Globe Life trades at 1.8x forward P/B. To fully understand why you should be careful with GL, check out our full research report (it’s free).

One Mid-Cap Stock to Watch:

Zebra (ZBRA)

Market Cap: $12.39 billion

Taking its name from the black and white stripes of barcodes, Zebra Technologies (NASDAQ:ZBRA) provides barcode scanners, mobile computers, RFID systems, and other data capture technologies that help businesses track assets and optimize operations.

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Why Does ZBRA Stand Out?

Core business can prosper without any help from acquisitions as its organic revenue growth averaged 12.5% over the past two years Share buybacks catapulted its annual earnings per share growth to 37.9%, which outperformed its revenue gains over the last two years Strong free cash flow margin of 11.6% enables it to reinvest or return capital consistently

Zebra’s stock price of $261.40 implies a valuation ratio of 13.8x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.

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