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IEX (©StockStory)

3 Mid-Cap Stocks with Questionable Fundamentals


Petr Huřťák /
2025/12/31 11:35 pm EST

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.

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 are three mid-cap stocks to swipe left on and some alternatives you should look into instead.

IDEX (IEX)

Market Cap: $13.32 billion

Founded in 1988, IDEX (NYSE:IEX) is a global manufacturer specializing in highly engineered products such as pumps, flow meters, and fluidics systems for various industries.

Why Should You Dump IEX?

  1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
  2. Earnings per share fell by 3.1% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
  3. Eroding returns on capital suggest its historical profit centers are aging

IDEX is trading at $177.95 per share, or 21.8x forward P/E. If you’re considering IEX for your portfolio, see our FREE research report to learn more.

Mettler-Toledo (MTD)

Market Cap: $28.48 billion

With roots dating back to the precision balance innovations of Swiss engineer Erhard Mettler, Mettler-Toledo (NYSE:MTD) manufactures precision weighing instruments, analytical equipment, and product inspection systems used in laboratories, industrial settings, and food retail.

Why Does MTD Fall Short?

  1. Sales were flat over the last two years, indicating it’s failed to expand this cycle
  2. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
  3. Efficiency has decreased over the last two years as its adjusted operating margin fell by 1.4 percentage points

Mettler-Toledo’s stock price of $1,394 implies a valuation ratio of 31.8x forward P/E. To fully understand why you should be careful with MTD, check out our full research report (it’s free for active Edge members).

Interactive Brokers (IBKR)

Market Cap: $28.64 billion

Founded in 1977 and known for its sophisticated trading technology and global reach across 150+ exchanges in 34 countries, Interactive Brokers (NASDAQ:IBKR) is a global electronic broker that provides low-cost trading and investment services across stocks, options, futures, forex, bonds, and other financial instruments.

Why Does IBKR Worry Us?

  1. High net-debt-to-EBITDA ratio of 5× increases the risk of forced asset sales or dilutive financing if operational performance weakens

At $64.37 per share, Interactive Brokers trades at 28.4x forward P/E. Dive into our free research report to see why there are better opportunities than IBKR.

High-Quality Stocks for All Market Conditions

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