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Why I would buy these mid cap growth stars in June

The large cap and small cap side of the market tends to get a lot of attention from investors, leaving the mid cap space often overlooked.

Which is a shame because there are some high-quality mid cap growth shares right now that I think would be great investment options. Here are three that I like:

Appen Ltd (ASX: APX)

Appen is a $1.1 billion provider of machine learning and artificial intelligence dataset services. It counts some of the largest tech companies in the world such as Facebook and Microsoft as customers. Due to the incredible rise of artificial intelligence and machine learning, Appen has been experiencing high levels of demand for its services over the last 12 months. So much so it expects to generate earnings before interest, tax, depreciation, and amortisation (EBITDA) of around $55 million in FY 2018, up 95% year-on-year.

Bega Cheese Ltd (ASX: BGA)

Bega Cheese is a $1.3 billion food company that acquired the iconic Vegemite brand from Mondelez last year. Thanks to this acquisition and its Tatura Milk business, I believe Bega Cheese is well-positioned to grow its bottom line at a strong rate over the next couple of years at least. This could make it worth a closer look, especially as its shares are trading at a reasonably fair 24x estimated forward earnings.

Bingo Industries Ltd (ASX: BIN)

Bingo Industries is a $1.1 billion waste management company that I believe could be a great buy and hold investment. Waste management is an industry that I like for its defensive qualities and high barriers of entry. But what sets Bingo Industries apart for me is its relatively small footprint at present. The predominantly New South Wales-based company intends to change that over the next decade by expanding nationwide. I believe this could put it in a position to grow earnings at above-average rate for many years to come.

Bonus picks.

These mid cap shares could also be great options in June. They have been performing exceptionally well in FY 2018 and I expect more of the same next year.

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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 Appen Ltd. 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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