When looking for long-term buy and hold investment options I think the mid cap space is a great place to start.
This is because in this area of the market I believe there are many shares that have the potential to grow significantly in the future and potentially even become blue chips.
Three mid caps that I like right now are listed below, they are as follows:
Afterpay Touch Group Ltd (ASX: APT)
Afterpay Touch is the company behind the increasingly popular Afterpay service which allows consumers to buy goods now but pay for them later in interest free instalments. As you might expect, the service has been a massive hit with both consumers and retailers. As a result, the company is now aiming to replicate its Australian success in the gigantic U.S. market. If Afterpay Touch succeeds with this expansion then it could provide the company with significant growth in the future. Right now I suspect that a fair bit of U.S. success has been built into its share price, which does make it a reasonably high risk investment.
HUB24 Ltd (ASX: HUB)
HUB24 is a fast-growing fintech company focused on the delivery of its portfolio management, transaction, and reporting solutions platform for licensees, financial advisers, accountants, stockbrokers, and institutions. Management recently advised that net inflows remained strong in the fourth quarter leading to its funds under administration rising significantly year-on-year to $8.3 billion. In light of this, it expects underlying EBITDA of approximately $11.8 million in FY 2018. I expect the growing demand for its products will mean that this strong growth continues in FY 2019 and beyond, making it well worth a closer look today.
Webjet Limited (ASX: WEB)
Another top mid cap growth share that I think would be a good option for investors is this online travel agent. I’ve been very impressed at the way its numerous brands have managed to achieve bookings growth well ahead of the industry average. Pleasingly, management appears confident this can continue over the medium term, putting the company in a position to grow its top and bottom lines at a strong rate for the next couple of years at least.
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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 AFTERPAY T FPO. 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.