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. Keeping that in mind, here are three mid-cap stocks to avoid and some other investments you should consider instead.
Market Cap: $26.9 billion
Best known for its Arm & Hammer baking soda, Church & Dwight (NYSE:CHD) is a household and personal care products company with a vast portfolio that spans laundry detergent to toothbrushes to hair removal creams.
Why Does CHD Worry Us?
At $109.37 per share, Church & Dwight trades at 29.4x forward price-to-earnings. Read our free research report to see why you should think twice about including CHD in your portfolio, it’s free.
Market Cap: $21.48 billion
Known for its unique land acquisition strategy, NVR (NYSE:NVR) is a respected homebuilder and mortgage company in the United States.
Why Are We Wary of NVR?
NVR is trading at $7,182 per share, or 14.1x forward price-to-earnings. If you’re considering NVR for your portfolio, see our FREE research report to learn more.
Market Cap: $10.84 billion
Founded in 2004, Penumbra (NYSE:PEN) designs and manufactures medical devices, focusing on the treatment of neurological and vascular diseases.
Why Are We Hesitant About PEN?
Penumbra’s stock price of $281.96 implies a valuation ratio of 73.6x forward price-to-earnings. Check out our free in-depth research report to learn more about why PEN doesn’t pass our bar.
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