I think there are plenty of high-quality shares in the mid cap space right now that could prove to be great long-term investments.
Three of my favourites are listed below. Here’s why I like them:
Bingo Industries Ltd (ASX: BIN)
This waste management company remains my favourite option in the mid cap space. Although it isn’t the most glamorous industry to invest in, I think it has qualities that make it a great place to look for ideas. Bingo is my preferred option in the industry due to its plans to expand its predominantly NSW-based business nationwide over the next few years. I feel this expansion, combined with population growth and the industry’s high barriers of entry, could lead to Bingo delivering strong long-term earnings growth.
Helloworld Travel Ltd (ASX: HLO)
I believe this travel company is another top option in the mid cap space right now. Due to Australia’s inbound and outbound tourism boom and the shift to online booking, I believe Helloworld and its travel industry peers are positioned well to deliver solid growth for the next few years. Because of this, I think that 18x estimated full-year earnings is great value for Helloworld’s shares. Especially considering it grew net profit before tax by 39% in the first half.
Megaport Ltd (ASX: MP1)
Megaport is a fast-growing provider of elasticity connectivity and network services which I expect to be a big winner from the cloud computing boom. Pleasingly this boom continues to show no signs of slowing judging by Microsoft’s quarterly results which were released this week. Those results revealed that Microsoft’s Azure cloud business almost doubled its revenue during the quarter compared to the prior corresponding period. I think this bodes well for Megaport’s future growth and should result in growing demand for its services.
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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 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.