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3 mid cap stars with blue chip potential

I think the mid cap space has a number of exciting investment options at the moment which investors should consider.

Three which I think could have the potential to be blue chips in the future are listed below. Here’s why I like them:

Bingo Industries Ltd (ASX: BIN)

Bingo Industries would have to be my favourite mid cap shares right now. I believe the waste management company could have a very bright future ahead of it thanks to its plan to expand nationwide from its predominantly NSW-based operations. I think this long-term growth plan, its defensive characteristics, the industry’s high barriers to entry, and Bingo’s highly profitable operations make it a great option for buy and hold investors.

Bravura Solutions Ltd (ASX: BVS)

This leading provider of software solutions for the wealth management, life insurance, and funds administration industries could be one of the best fintech shares on the local market in my opinion. The main attraction to the company for me is its Sonata web-enabled administration solution. Demand for the product has been growing strongly, leading to a 35% increase in the product’s revenue to $56.7 million during the first half. This means that it now accounts for 55% of the company’s overall revenue.

Helloworld Travel Ltd (ASX: HLO)

While Helloworld may not be the first name that comes to find when you think about investing in the travel industry, I think it is well worth considering. During the first-half of FY 2018 the company grew its net profit before tax by an impressive 39.2% to $26 million. Pleasingly, with demand for its integrated service offering remaining strong, management appears confident that it will have an equally strong second-half. I think this positive outlook makes the company a quality mid cap investment option right now.

As well as Bingo, Bravura, and Helloworld, I think these mid cap shares could have extremely bright futures.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Bravura Solutions Ltd and Helloworld Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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