3 Mid-Cap Stocks with Warning Signs

3 Mid-Cap Stocks with Warning Signs

Radek Strnad

Thu, February 26, 2026 at 9:18 PM GMT+9 3 min read

In this article:

WST

+1.02%

CNC

+0.76%

OSK

-3.11%

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 swipe left on and some alternatives you should look into instead.

Oshkosh (OSK)

Market Cap: $10.78 billion

Oshkosh (NYSE:OSK) manufactures specialty vehicles for the defense, fire, emergency, and commercial industry, operating various brand subsidiaries within each industry.

Why Are We Hesitant About OSK?

Demand cratered as it couldn’t win new orders over the past two years, leading to an average 5.7% decline in its backlog

Gross margin of 16.5% is below its competitors, leaving less money to invest in areas like marketing and R&D

Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 4.5% annually

At $172.39 per share, Oshkosh trades at 15.7x forward P/E. Check out our free in-depth research report to learn more about why OSK doesn’t pass our bar.

Centene (CNC)

Market Cap: $20.99 billion

Serving nearly 1 in 15 Americans through its government healthcare programs, Centene (NYSE:CNC) is a healthcare company that manages government-sponsored health insurance programs like Medicaid and Medicare for low-income and complex-needs populations.

Why Does CNC Fall Short?

Customer growth was choppy over the past two years, suggesting that increasing competition is causing challenges in landing new contracts

Incremental sales over the last five years were much less profitable as its earnings per share fell by 16.3% annually while its revenue grew

Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

Centene’s stock price of $42.78 implies a valuation ratio of 13.9x forward P/E. Read our free research report to see why you should think twice about including CNC in your portfolio, it’s free.

West Pharmaceutical Services (WST)

Market Cap: $17.85 billion

Founded in 1923 and serving as a critical link in the pharmaceutical supply chain, West Pharmaceutical Services (NYSE:WST) manufactures specialized packaging, containment systems, and delivery devices for injectable drugs and healthcare products.

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Why Does WST Give Us Pause?

Muted 2.1% annual revenue growth over the last two years shows its demand lagged behind its healthcare peers

Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 6.7 percentage points

Diminishing returns on capital suggest its earlier profit pools are drying up

West Pharmaceutical Services is trading at $247.92 per share, or 30.7x forward P/E. If you’re considering WST for your portfolio, see our FREE research report to learn more.

High-Quality Stocks for All Market Conditions

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The names generating the next wave of massive growth are right here in our Top 6 Stocks for this week. 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

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