10 Best Mid Cap 2b for November 2025
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Market Overview & Selection Criteria
The current market environment is characterized by heightened volatility, sector rotation, and a renewed focus on fundamentals. Our selection methodology emphasizes mid-cap stocks with strong intrinsic value signals, robust financial health, and sectoral diversification. Each stock is evaluated using ValueSense’s proprietary quality rating, intrinsic value estimates, and key financial metrics such as revenue growth, free cash flow, and return on invested capital (ROIC). This approach aims to identify undervalued stocks with compelling growth or turnaround potential, while maintaining a balanced risk profile.
Featured Stock Analysis
Stock #1: SPX Technologies, Inc. (SPXC)
| Metric | Value |
|---|---|
| Market Cap | $10.8B |
| Quality Rating | 7.0 |
| Intrinsic Value | $98.4 |
| 1Y Return | 56.0% |
| Revenue | $2,161.5M |
| Free Cash Flow | $272.9M |
| Revenue Growth | 12.6% |
| FCF margin | 12.6% |
| Gross margin | 40.8% |
| ROIC | 11.5% |
| Total Debt to Equity | 19.4% |
Investment Thesis
SPX Technologies stands out as a diversified industrial company with a market cap of $10.8B and a ValueSense quality rating of 7.0. The company’s intrinsic value is estimated at $98.4, suggesting potential upside relative to current market pricing. Over the past year, SPXC delivered a 56.0% return, supported by $2.16B in revenue and a healthy free cash flow of $272.9M. The company’s revenue growth rate of 12.6% and gross margin of 40.8% highlight operational efficiency and pricing power. With an ROIC of 11.5% and a conservative total debt to equity ratio of 19.4%, SPX Technologies demonstrates prudent capital management and sustainable growth prospects.
Key Catalysts
- Strong double-digit revenue growth and expanding margins
- Solid free cash flow generation supporting reinvestment and shareholder returns
- Low leverage enhances financial flexibility for future acquisitions or organic growth
Risk Factors
- Exposure to cyclical industrial demand trends
- Potential supply chain disruptions impacting margins
- Competitive pressures in core markets
Stock #2: QuantumScape Corporation (QS)
| Metric | Value |
|---|---|
| Market Cap | $10.4B |
| Quality Rating | 5.8 |
| Intrinsic Value | $1.5 |
| 1Y Return | 258.1% |
| Revenue | $0.0 |
| Free Cash Flow | ($280.1M) |
| Revenue Growth | (100.0%) |
| FCF margin | N/A |
| Gross margin | N/A |
| ROIC | (156.2%) |
| Total Debt to Equity | 11.3% |
Investment Thesis
QuantumScape is a high-profile battery technology innovator with a $10.4B market cap and a ValueSense quality rating of 5.8. Despite an intrinsic value estimate of $1.5 (well below current trading levels), the stock has surged 258.1% over the past year, reflecting speculative enthusiasm around its solid-state battery breakthroughs. The company currently reports no revenue and negative free cash flow of $280.1M, with a ROIC of 156.2%, underscoring its early-stage, high-risk profile. However, its low total debt to equity ratio of 11.3% provides some balance sheet stability as it pursues commercialization.
Key Catalysts
- Breakthroughs in solid-state battery technology could disrupt the EV market
- Strategic partnerships with major automakers
- Strong investor interest in next-generation energy storage
Risk Factors
- No current revenue; long commercialization timeline
- High cash burn and negative returns on invested capital
- Technology execution and scalability risks
Stock #3: BioMarin Pharmaceutical Inc. (BMRN)
| Metric | Value |
|---|---|
| Market Cap | $10.3B |
| Quality Rating | 6.7 |
| Intrinsic Value | $56.8 |
| 1Y Return | -18.7% |
| Revenue | $3,094.0M |
| Free Cash Flow | $831.4M |
| Revenue Growth | 12.5% |
| FCF margin | 26.9% |
| Gross margin | 81.3% |
| ROIC | 14.7% |
| Total Debt to Equity | 9.9% |
Investment Thesis
BioMarin Pharmaceutical, with a $10.3B market cap and a ValueSense quality rating of 6.7, is a leading rare disease drug developer. The company’s intrinsic value is pegged at $56.8. Despite a one-year return of -18.7%, BioMarin’s fundamentals remain robust: $3.09B in revenue, $831.4M in free cash flow, and a sector-leading gross margin of 81.3%. Revenue growth stands at 12.5%, and the company boasts a strong FCF margin 26.9% and ROIC 14.7%. Its low total debt to equity ratio 9.9% supports a stable financial structure, positioning BioMarin for future product launches and pipeline expansion.
Key Catalysts
- Expanding portfolio of rare disease therapies
- Strong free cash flow supports R&D and potential M&A
- High gross margins and efficient capital allocation
Risk Factors
- Pipeline execution and regulatory approval risks
- Competitive pressures in rare disease markets
- Recent negative share price momentum
Stock #4: Rapport Therapeutics, Inc. (RAPP)
| Metric | Value |
|---|---|
| Market Cap | $10.3B |
| Quality Rating | 5.9 |
| Intrinsic Value | $0.7 |
| 1Y Return | 17.9% |
| Revenue | $0.0 |
| Free Cash Flow | ($76.8M) |
| Revenue Growth | N/A |
| FCF margin | N/A |
| Gross margin | N/A |
| ROIC | (1,029.1%) |
| Total Debt to Equity | 8.3% |
Investment Thesis
Rapport Therapeutics is an emerging biotech with a $10.3B market cap and a ValueSense quality rating of 5.9. The intrinsic value is estimated at $0.7, and the stock has returned 17.9% over the past year. With no reported revenue and negative free cash flow of $76.8M, Rapport is in the early stages of development, reflected in its extremely negative ROIC of 1,029.1%. The company’s low total debt to equity ratio 8.3% provides some financial cushion as it advances its pipeline.
Key Catalysts
- Advancements in clinical-stage therapeutics
- Potential for breakthrough designations or partnerships
- Investor interest in novel biotech platforms
Risk Factors
- No current revenue; high cash burn
- Clinical and regulatory uncertainties
- High volatility typical of early-stage biotech
Stock #5: Hims & Hers Health, Inc. (HIMS)
| Metric | Value |
|---|---|
| Market Cap | $10.2B |
| Quality Rating | 7.4 |
| Intrinsic Value | $23.8 |
| 1Y Return | 141.4% |
| Revenue | $2,013.5M |
| Free Cash Flow | $119.5M |
| Revenue Growth | 88.7% |
| FCF margin | 5.9% |
| Gross margin | 76.2% |
| ROIC | 43.2% |
| Total Debt to Equity | 185.6% |
Investment Thesis
Hims & Hers Health is a fast-growing digital health platform with a $10.2B market cap and the highest ValueSense quality rating in this collection at 7.4. The intrinsic value is $23.8, and the stock has soared 141.4% over the past year. HIMS generated $2.01B in revenue, with $119.5M in free cash flow and a remarkable 88.7% revenue growth rate. The company’s gross margin is 76.2%, and its ROIC is an impressive 43.2%. However, the total debt to equity ratio is elevated at 185.6%, reflecting aggressive growth financing.
Key Catalysts
- Rapid expansion in telehealth and digital pharmacy markets
- Strong revenue and margin growth
- High return on invested capital
Risk Factors
- High leverage increases financial risk
- Competitive digital health landscape
- Regulatory scrutiny in healthcare delivery
Stock #6: Norwegian Cruise Line Holdings Ltd. (NCLH)
| Metric | Value |
|---|---|
| Market Cap | $9,951.8M |
| Quality Rating | 5.6 |
| Intrinsic Value | $74.2 |
| 1Y Return | -11.5% |
| Revenue | $9,561.0M |
| Free Cash Flow | ($504.5M) |
| Revenue Growth | 5.2% |
| FCF margin | (5.3%) |
| Gross margin | 41.4% |
| ROIC | 8.8% |
| Total Debt to Equity | 876.9% |
Investment Thesis
Norwegian Cruise Line Holdings, with a $9.95B market cap and a ValueSense quality rating of 5.6, is a major player in the travel and leisure sector. The intrinsic value is $74.2, but the stock has declined -11.5% over the past year. NCLH reported $9.56B in revenue, but free cash flow remains negative at $504.5M, and the company’s total debt to equity ratio is extremely high at 876.9%. Despite a gross margin of 41.4% and a modest revenue growth of 5.2%, the company’s high leverage and negative FCF margin -5.3% highlight ongoing post-pandemic recovery challenges.
Key Catalysts
- Recovery in global travel demand
- Operational leverage as occupancy rates improve
- Potential for margin expansion with cost controls
Risk Factors
- High debt load and interest expense
- Sensitivity to macroeconomic and health-related shocks
- Negative free cash flow
Stock #7: Aurora Innovation, Inc. (AUR)
| Metric | Value |
|---|---|
| Market Cap | $9,908.8M |
| Quality Rating | 5.0 |
| Intrinsic Value | $0.6 |
| 1Y Return | 0.8% |
| Revenue | $2,000.0K |
| Free Cash Flow | ($608.0M) |
| Revenue Growth | N/A |
| FCF margin | (30,400.0%) |
| Gross margin | (1,700.0%) |
| ROIC | (103.8%) |
| Total Debt to Equity | 4.7% |
Investment Thesis
Aurora Innovation is a self-driving technology company with a $9.91B market cap and a ValueSense quality rating of 5.0. The intrinsic value is $0.6, and the stock has returned just 0.8% over the past year. Aurora generated $2M in revenue, with a significant negative free cash flow of $608M and a deeply negative FCF margin -30,400%. The company’s gross margin is also negative -1,700%, and ROIC stands at 103.8%. However, its low total debt to equity ratio 4.7% provides some balance sheet stability as it invests in R&D.
Key Catalysts
- Progress in autonomous vehicle technology
- Strategic partnerships with automotive OEMs
- Potential for future commercialization
Risk Factors
- Minimal revenue and high cash burn
- Technology and regulatory hurdles
- High volatility and speculative valuation
Stock #8: Open Text Corporation (OTEX)
| Metric | Value |
|---|---|
| Market Cap | $9,882.0M |
| Quality Rating | 5.9 |
| Intrinsic Value | $151.8 |
| 1Y Return | 30.3% |
| Revenue | $5,168.4M |
| Free Cash Flow | $687.4M |
| Revenue Growth | (10.3%) |
| FCF margin | 13.3% |
| Gross margin | 72.3% |
| ROIC | 7.9% |
| Total Debt to Equity | 169.0% |
Investment Thesis
Open Text Corporation, with a $9.88B market cap and a ValueSense quality rating of 5.9, is a leader in enterprise information management. The intrinsic value is $151.8, and the stock has returned 30.3% over the past year. OTEX generated $5.17B in revenue and $687.4M in free cash flow, with a gross margin of 72.3%. However, revenue declined by 10.3% year-over-year, and the company’s total debt to equity ratio is elevated at 169.0%. Despite these challenges, OTEX maintains a healthy FCF margin 13.3% and a solid ROIC 7.9%.
Key Catalysts
- Expansion in cloud and digital transformation services
- Strong free cash flow supports ongoing innovation
- High gross margins in software and services
Risk Factors
- Revenue contraction in recent periods
- High leverage limits financial flexibility
- Competitive pressures in enterprise software
Stock #9: The AES Corporation (AES)
| Metric | Value |
|---|---|
| Market Cap | $9,861.6M |
| Quality Rating | 5.3 |
| Intrinsic Value | $26.5 |
| 1Y Return | -13.6% |
| Revenue | $12.0B |
| Free Cash Flow | ($2,551.0M) |
| Revenue Growth | (3.2%) |
| FCF margin | (21.2%) |
| Gross margin | 38.0% |
| ROIC | 1.3% |
| Total Debt to Equity | 394.0% |
Investment Thesis
AES Corporation is a global power company with a $9.86B market cap and a ValueSense quality rating of 5.3. The intrinsic value is $26.5, and the stock has declined -13.6% over the past year. AES reported $12B in revenue but negative free cash flow of $2.55B. The company’s gross margin is 38.0%, but revenue growth is negative -3.2%, and the total debt to equity ratio is high at 394.0%. AES’s FCF margin is also negative -21.2%, reflecting capital-intensive operations and sector headwinds.
Key Catalysts
- Transition to renewable energy assets
- Potential for margin improvement with cost controls
- Global infrastructure investment trends
Risk Factors
- High leverage and negative free cash flow
- Exposure to commodity price volatility
- Regulatory and environmental risks
Stock #10: Generac Holdings Inc. (GNRC)
| Metric | Value |
|---|---|
| Market Cap | $9,846.7M |
| Quality Rating | 5.6 |
| Intrinsic Value | $206.1 |
| 1Y Return | 1.5% |
| Revenue | $4,352.4M |
| Free Cash Flow | $416.5M |
| Revenue Growth | 5.5% |
| FCF margin | 9.6% |
| Gross margin | 39.5% |
| ROIC | 10.5% |
| Total Debt to Equity | 60.2% |
Investment Thesis
Generac Holdings, with a $9.85B market cap and a ValueSense quality rating of 5.6, is a leading manufacturer of backup power systems. The intrinsic value is $206.1, and the stock has returned 1.5% over the past year. GNRC reported $4.35B in revenue and $416.5M in free cash flow, with a revenue growth rate of 5.5%. The company’s gross margin is 39.5%, FCF margin is 9.6%, and ROIC is 10.5%. The total debt to equity ratio is moderate at 60.2%, supporting ongoing investment in innovation and market expansion.
Key Catalysts
- Rising demand for backup power solutions amid grid instability
- Expansion into clean energy and smart home markets
- Consistent free cash flow generation
Risk Factors
- Cyclical demand tied to weather and infrastructure trends
- Competitive pressures in energy solutions
- Moderate leverage
Portfolio Diversification Insights
This watchlist spans multiple sectors, including industrials, healthcare, technology, energy, and consumer services. The inclusion of both high-growth disruptors (e.g., QuantumScape, Hims & Hers Health) and established cash generators (e.g., SPX Technologies, BioMarin, Generac) provides a blend of risk and return profiles. Exposure to early-stage biotech and technology (Rapport Therapeutics, Aurora Innovation) is balanced by more defensive or cash-flow-positive names. Sector allocation is designed to mitigate idiosyncratic risks while capturing upside from secular trends in healthcare innovation, digital transformation, and energy transition.
Market Timing & Entry Strategies
Given the diverse risk profiles of these stocks, entry strategies should be tailored to individual company fundamentals and market conditions. For high-growth or speculative names, consider phased entry or dollar-cost averaging to manage volatility. For established cash-flow generators, look for technical support levels or periods of market weakness to initiate positions. Monitoring earnings reports, sector news, and macroeconomic indicators can help refine timing decisions. Always align entry points with your own risk tolerance and investment horizon.
Explore More Investment Opportunities
For investors seeking undervalued companies with high fundamental quality, our analytics team provides curated stock lists:
📌 50 Undervalued Stocks (Best overall value plays for 2025)
📌 50 Undervalued Dividend Stocks (For income-focused investors)
📌 50 Undervalued Growth Stocks (High-growth potential with strong fundamentals)
🔍 Check out these stocks on the Value Sense platform for free!
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FAQ Section
Q1: How were these stocks selected?
These stocks were chosen using ValueSense’s proprietary screening, focusing on intrinsic value, quality ratings, financial health, and sector diversification based on the latest available data.
Q2: What's the best stock from this list?
Each stock offers unique strengths; however, Hims & Hers Health (HIMS) stands out for its high quality rating, rapid revenue growth, and strong return on invested capital.
Q3: Should I buy all these stocks or diversify?
Diversification is key to managing risk. This watchlist is designed to provide exposure across sectors and risk profiles, allowing investors to tailor allocations based on their own objectives.
Q4: What are the biggest risks with these picks?
Risks include company-specific factors (e.g., high cash burn, leverage), sector volatility, and broader market conditions. Early-stage and speculative stocks carry higher risk than established cash-flow generators.
Q5: When is the best time to invest in these stocks?
Optimal timing depends on individual stock fundamentals, market sentiment, and personal risk tolerance. Consider phased entry and monitor key catalysts such as earnings, product launches, or sector news.