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. That said, here is one mid-cap stock with massive growth potential and two that could be down big.

Two Mid-Cap Stocks to Sell:

Tapestry (TPR)

Market Cap: $23.61 billion

Originally founded as Coach, Tapestry (NYSE: TPR) is an American fashion conglomerate with a portfolio of luxury brands offering high-quality accessories and fashion products.

Why Are We Wary of TPR?

1. Weak constant currency growth over the past two years indicates challenges in maintaining its market share
2. Estimated sales growth of 3.1% for the next 12 months is soft and implies weaker demand
3. Eroding returns on capital suggest its historical profit centers are aging

At $114.10 per share, Tapestry trades at 20.9x forward P/E. If you’re considering TPR for your portfolio, see our FREE research report to learn more.

APi (APG)

Market Cap: $14.37 billion

Started in 1926 as an insulation contractor, APi (NYSE: APG) provides life safety solutions and specialty services for buildings and infrastructure.

Why Are We Hesitant About APG?

1. 4.2% annual revenue growth over the last two years was slower than its industrials peers
2. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
3. Low returns on capital reflect management’s struggle to allocate funds effectively

APi is trading at $34.56 per share, or 22.5x forward P/E. Read our free research report to see why you should think twice about including APG in your portfolio.

One Mid-Cap Stock to Watch:

Tenet Healthcare (THC)

Market Cap: $16.79 billion

With a network spanning nine states and serving primarily urban and suburban communities, Tenet Healthcare (NYSE: THC) operates a nationwide network of hospitals, ambulatory surgery centers, and outpatient facilities providing acute care and specialty healthcare services.

Why Are We Fans of THC?

1. Share repurchases over the last five years enabled its annual earnings per share growth of 29.1% to outpace its revenue gains
2. Industry-leading 21.3% return on capital demonstrates management’s skill in finding high-return investments, and its returns are climbing as it finds even more attractive growth opportunities
3. Improving returns on capital reflect management’s ability to monetize investments

Tenet Healthcare’s stock price of $190 implies a valuation ratio of 12.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

Stocks We Like Even More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 5 Growth Stocks for this month. 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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