MENU

3 mid cap stars I would buy this month

I think there are a large number of high-quality mid cap shares on the local share market right now that could be great long-term investments.

Three of the best in my opinion are listed below. Here’s why I like them:

Bravura Solutions Ltd (ASX: BVS)

This fast-growing fintech company is a provider of software solutions for the wealth management, life insurance, and funds administration industries. Demand for its Sonata web-enabled administration solution has been growing at an impressive rate over the last 18 months, leading it to become the biggest contributor of the company’s total revenue. Due to the quality of the platform and its sizeable market opportunity, I think Bravura is a company with a bright future ahead of it.

Collins Foods Ltd (ASX: CKF)

Collins Foods is one of the largest franchisees of KFC restaurants in the world. While its store network has grown significantly over the last few years, thanks to its expansion plans in an underpenetrated European market, I believe there is still a lot of growth left in its tank. I feel that this should put Collins Foods in a position to achieve above-average earnings and dividend growth for many years to come. This could make it a great option for investors at a reasonable 19x trailing earnings.

Helloworld Travel Ltd (ASX: HLO)

This travel booking company had a fantastic first half of FY 2018 and delivered a 39.2% increase in net profit before tax to $26 million. This was driven largely by the growing demand for its integrated service offering. With tourism into and out of Australia continuing to grow strongly, I believe Helloworld Travel can deliver solid profit growth for the foreseeable future. Another bonus is that its shares trade at a significant discount to many of its travel industry peers at just 17x estimated full-year earnings.

As well as Bravura, Collins Foods, and Helloworld, I think these top mid cap shares are also in the buy zone right now.

The Disruptors: 3 Revolutionary Aussie Companies to Back for 2018

We’re living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Cochlear or REA Group.

We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

Motley Fool contributor James Mickleboro owns shares of Collins Foods Limited. 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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.