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.
This is precisely where StockStory comes in – we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. That said, here is one mid-cap stock with huge upside potential and two that could be down big.
Two Mid-Cap Stocks to Sell:
IQVIA (IQV)
Market Cap: $28.77 billion
Created from the 2016 merger of Quintiles (a clinical research organization) and IMS Health (a healthcare data specialist), IQVIA (NYSE:IQV) provides clinical research services, data analytics, and technology solutions to help pharmaceutical companies develop and market medications more effectively.
Why Are We Wary of IQV?
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Annual sales growth of 5.1% over the last two years lagged behind its healthcare peers as its large revenue base made it difficult to generate incremental demand
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Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn’t resonate with customers
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Expenses have increased as a percentage of revenue over the last two years as its adjusted operating margin fell by 1.1 percentage points
At $172.13 per share, IQVIA trades at 13.3x forward P/E. If you’re considering IQV for your portfolio, see our FREE research report to learn more.
First Citizens BancShares (FCNCA)
Market Cap: $21.84 billion
With roots dating back to 1898 and a significant expansion through its 2023 acquisition of Silicon Valley Bank, First Citizens BancShares (NASDAQGS:FCNC.A) is a bank holding company that provides financial services to individuals and businesses through its First-Citizens Bank & Trust Company subsidiary.
Why Are We Hesitant About FCNCA?
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Customers postponed purchases of its products and services this cycle as its revenue declined by 3.7% annually over the last two years
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Concessions to defend its market share have ramped up over the last two years as its net interest margin decreased by 74.8 basis points (100 basis points = 1 percentage point)
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Sales were less profitable over the last two years as its earnings per share fell by 5.6% annually, worse than its revenue declines
First Citizens BancShares’s stock price of $1,909 implies a valuation ratio of 1x forward P/B. Dive into our free research report to see why there are better opportunities than FCNCA.