Many investors pay attention to mid-cap stocks because they have established business models and expansive market opportunities. However, their paths to becoming $100 billion corporations are ripe with competition, ranging from giants with vast resources to agile upstarts eager to disrupt the status quo.
Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. Keeping that in mind, here is one mid-cap stock with massive growth potential and two that could be down big.
Two Mid-Cap Stocks to Sell:
Toll Brothers (TOL)
Market Cap: $13.6 billion
Started by two brothers who started by building and selling just one home in Pennsylvania, today Toll Brothers (NYSE:TOL) is a luxury homebuilder across the United States.
Why Are We Wary of TOL?
- Backlog has dropped by 6.3% on average over the past two years, suggesting it’s losing orders as competition picks up
- Earnings per share have contracted by 1.4% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
- Free cash flow margin shrank by 6.4 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
At $141.55 per share, Toll Brothers trades at 10.5x forward P/E. Read our free research report to see why you should think twice about including TOL in your portfolio.
Old Republic International (ORI)
Market Cap: $10.63 billion
Founded during the Roaring Twenties in 1923 and weathering nearly a century of economic cycles, Old Republic International (NYSE:ORI) is a diversified insurance holding company that provides property, liability, title, and mortgage guaranty insurance through its various subsidiaries.
Why Does ORI Give Us Pause?
- Growth in insurance policies was lackluster over the last five years as its 3.3% annual growth underperformed the typical financial institution
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 9.9% annually
- Forecasted book value per share decline of 1% for the upcoming 12 months implies profitability will deteriorate significantly
Old Republic International is trading at $43.66 per share, or 1.7x forward P/B. If you’re considering ORI for your portfolio, see our FREE research report to learn more.
One Mid-Cap Stock to Watch:
CACI (CACI)
Market Cap: $13.37 billion
Founded to commercialize SIMSCRIPT, CACI International (NYSE:CACI) offers defense, intelligence, and IT solutions to support national security and government transformation efforts.
Why Are We Fans of CACI?
- Demand is greater than supply as the company’s 11.3% average backlog growth over the past two years shows it’s securing new contracts and accumulating more orders than it can fulfill
- Business has a stable foundation, supported by its long-term operating margin of 8.6%
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
CACI’s stock price of $605.71 implies a valuation ratio of 20.7x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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