MENU

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.

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 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.

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.