3 mid cap growth stars I would buy this month

When looking for long-term buy and hold investment options I think the mid cap space is a great place to start.

At this side 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:

Altium Limited (ASX: ALU)

Altium is a software-as-a-service company providing an award-winning printed circuit board (PCB) design platform. With the launch of 5G internet on the horizon, the Internet of Things is likely to be given a major lift. As almost all connected devices have PCBs inside them, I expect demand for Altium’s software will grow strongly over the next decade as the number of connected devices explodes. This could make it worth considering a patient buy and hold investment. Though it is worth noting that its shares trade at a significant premium to the market average, making them a high risk investment.

Appen Ltd (ASX: APX)

Another top tech share with strong long-term growth potential is Appen. It is a language technology data and services provider which has been experiencing strong demand for its services from many of the world’s top tech companies. As the company’s services cater to the massive machine learning and artificial intelligence markets which are poised to grow significantly in the future, I believe Appen could be positioned perfectly to deliver strong long-term earnings growth. This year management expects the company to almost double its EBITDA to $55 million.

Helloworld Travel Ltd (ASX: HLO)

I believe this travel company is an underappreciated mid cap share with a lot of potential. Due to Australia’s inbound and outbound tourism boom and the shift to online booking, I expect Helloworld to deliver solid growth for at least the next few years. So with its shares changing hands at a reasonable 18x estimated full-year earnings, I think it could be a great option for investors.

Just like these other mid cap growth stars tipped as buys.

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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 Altium, Appen Ltd, and 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.

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