Mid-cap Stocks to Watch: McCormick, Woodward, and Booz Allen Hamilton

McCormick and Woodward are mid-cap stocks with disappointing performance, while Booz Allen Hamilton stands out with strong organic revenue growth and economies of scale. McCormick's core business is underperforming, with disappointing organic revenue and earnings growth. Woodward's revenue and earnings growth are slower than its peers, and its free cash flow margin has declined significantly. Booz Allen Hamilton, on the other hand, has strong organic revenue growth and can expand its business lines without risky acquisitions.

In the mid-cap stock segment, McCormick & Company, Inc. (MKC) and Woodward, Inc. (WWD) have shown disappointing performance, while Booz Allen Hamilton Holding Corporation (BAH) stands out with strong organic revenue growth and economies of scale.

McCormick, valued at $19.1 billion by market cap, has seen its stock underperform the broader market over the past year. The company's shares have declined by 8.2% while the S&P 500 Index ($SPX) has rallied by nearly 16.1%. In the second quarter of 2025, McCormick reported a 1% increase in net sales to $1.66 billion, driven by strength in its Consumer segment. However, the company's core business has shown disappointing organic revenue and earnings growth [1].

Woodward, Inc., on the other hand, has seen its revenue and earnings growth slow down compared to its peers. The company's free cash flow margin has also declined significantly, indicating a decrease in profitability. Despite these challenges, Woodward has maintained a strong balance sheet and a solid dividend payout ratio of 45.2% [2].

Booz Allen Hamilton, however, has demonstrated robust organic revenue growth and economies of scale. The company's stock has seen significant institutional interest, with several hedge funds and other institutional investors acquiring large positions in the first quarter of 2025. Booz Allen Hamilton's strong performance in the business services sector, driven by its expertise in artificial intelligence and digital solutions, has positioned it as a leader in the industry [2].

In conclusion, while McCormick and Woodward face challenges in their respective core businesses, Booz Allen Hamilton stands out with its strong organic revenue growth and economies of scale. Investors should closely monitor these companies' performance and earnings reports to make informed investment decisions.

References:
[1] https://www.newsbreak.com/barchart-338247362/4192218192384-what-are-wall-street-analysts-target-price-for-mccormick-company-stock
[2] https://www.marketbeat.com/instant-alerts/filing-3673-shares-in-booz-allen-hamilton-holding-corporation-bah-purchased-by-kaufman-rossin-wealth-llc-2025-08-21/