I think there are a large number of high-quality mid cap growth shares on the Australian share market that could prove to be great long-term investments.
Three that tick a lot of boxes for me right now are listed below. Here’s why I like them:
Bapcor Ltd (ASX: BAP)
Bapcor is one of Australia’s largest suppliers of car parts and accessories and recently announced plans to expand into Asia. I’m optimistic that this expansion should support its future growth when its Australian operations’ growth inevitably slows down. But that slowdown certainly isn’t coming any time soon. Management recently reaffirmed its guidance for 30% pro forma net profit after tax growth from continuing operations in FY 2018. While there are concerns that Bapcor could suffer when electric vehicles become the norm, the company doesn’t believe this will be the case and intends to supply electronic components and batteries.
Lovisa Holdings Ltd (ASX: LOV)
This fast fashion jewellery company has been a star performer over the last 12 months thanks to the success of its international expansion. The good news is that this expansion could arguably be only in its infancy if it can succeed in the U.S. market. Considering Lovisa has 152 stores (47.5% of its network) in Australia and just one in the United States, I think the company could more than double its store network over the next decade just from its North American expansion if all goes to plan. There is a risk, though, that a failure in the United States could lead to a sharp share price decline.
Webjet Limited (ASX: WEB)
One area of the share market which has been on form this year has been the travel industry. Strong increases in inbound and outbound tourism combined with a shift to online booking has led to companies like Webjet delivering strong earnings growth once again. Webjet achieved a 45% increase in net profit after tax before acquisition amortisation from its continuing operations in the first-half and I believe the second-half and FY 2019 will be equally strong given the strong bookings growth it has been exhibiting.
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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 and has recommended Bapcor. The Motley Fool Australia has recommended Webjet 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.