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 is one mid-cap stock with a long growth runway and two best left ignored.
Two Mid-Cap Stocks to Sell:
VeriSign (VRSN)
Market Cap: $22.95 billion
As the silent guardian of the internet's roadmap, VeriSign (NASDAQ:VRSN) operates the authoritative registry for .com and .net domain names, enabling websites to be found reliably when users type web addresses.
Why Do We Think Twice About VRSN?
- Sales trends were unexciting over the last two years as its 4.8% annual growth was well below the typical software company
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 4.9%
- Static operating margin over the last year shows it couldn’t become more efficient
VeriSign is trading at $245.25 per share, or 13.6x forward price-to-sales. Dive into our free research report to see why there are better opportunities than VRSN.
KeyCorp (KEY)
Market Cap: $19.6 billion
Tracing its roots back to 1849 during the California Gold Rush era, KeyCorp (NYSE:KEY) operates KeyBank, a full-service regional bank providing retail and commercial banking, wealth management, and investment services across 15 states.
Why Are We Wary of KEY?
- 2.8% annual net interest income growth over the last five years was slower than its banking peers
- Net interest margin of 2.4% is well below other banks, signaling its loans aren’t very profitable
- Tangible book value per share was flat over the last five years, indicating it’s failed to build equity value this cycle
KeyCorp’s stock price of $17.63 implies a valuation ratio of 1.1x forward P/B. If you’re considering KEY for your portfolio, see our FREE research report to learn more.
One Mid-Cap Stock to Watch:
DraftKings (DKNG)
Market Cap: $16.36 billion
Getting its start in daily fantasy sports, DraftKings (NASDAQ:DKNG) is a digital sports entertainment and gaming company.
Why Are We Fans of DKNG?
- Rise in monthly unique players indicates high demand for its offerings
- Notable projected revenue growth of 25.1% for the next 12 months hints at market share gains
- Free cash flow margin is forecasted to grow by 4.9 percentage points in the coming year, potentially giving the company more chips to play with
At $33.06 per share, DraftKings trades at 26.1x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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