3 Mid-Cap Stocks We Find Risky
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 three mid-cap stocks to swipe left on and some alternatives you should look into instead.
Market Cap: $11.38 billion
A global leader in its category, Lattice Semiconductor (NASDAQ:LSCC) is a semiconductor designer specializing in customer-programmable chips that enhance CPU performance for intensive tasks such as machine learning.
Why Do We Think Twice About LSCC?
Sales tumbled by 18.4% annually over the last two years, showing market trends are working against its favor during this cycle
Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 18.8 percentage points
Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 5.5% annually
At $83.28 per share, Lattice Semiconductor trades at 60.6x forward P/E. If you’re considering LSCC for your portfolio, see our FREE research report to learn more.
Market Cap: $23.84 billion
Operating as Spectrum, Charter (NASDAQ:CHTR) is a leading telecommunications company offering cable television, high-speed internet, and voice services across the United States.
Why Do We Avoid CHTR?
Number of internet subscribers has disappointed over the past two years, indicating weak demand for its offerings
Free cash flow margin is expected to remain in place over the coming year
Rising returns on capital show management is making relatively better investments
Charter is trading at $186.63 per share, or 4.5x forward P/E. Dive into our free research report to see why there are better opportunities than CHTR.
Market Cap: $12.56 billion
With roots dating back to 1853 and majority ownership by Loews Corporation, CNA Financial (NYSE:CNA) is a commercial property and casualty insurance provider offering coverage for businesses, including professional liability, surety bonds, and specialized risk management services.
Why Do We Pass on CNA?
Large revenue base constrains its growth potential, as seen in its unexciting 7.3% annualized increases in net premiums earned over the last five years fell below our expectations for the insurance sector
Earnings per share lagged its peers over the last two years as they only grew by 6.8% annually
Products and services are facing significant credit quality challenges during this cycle as book value per share has declined by 1.1% annually over the last five years
CNA Financial’s stock price of $46.41 implies a valuation ratio of 9.3x forward P/E. Read our free research report to see why you should think twice about including CNA in your portfolio, it’s free.
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 9 Market-Beating Stocks. 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.