I think the mid cap side of the Australian share market has a large number of high-quality shares which could prove to be great investments over the long term.
Three that jump out as top buy and hold options at present are listed below. Here’s why I think they are worth a closer look:
Bingo Industries Ltd (ASX: BIN)
One of my favourite mid cap shares right now is this waste management company. In FY 2018 Bingo Industries posted pro forma profit growth of 44.8% to $48.2 million thanks to its growing footprint in Victoria and exposure to strong end markets underpinned by economic tailwinds, favourable demographics and robust construction activity. Pleasingly, management expects this strong form to continue in FY 2019 and has forecast EBITDA growth in the range of 15% to 20%. Impressively, this doesn’t include the potential positive impact of its planned $577.5 million acquisition of Dial A Dump Industries.
Kogan.com Ltd (ASX: KGN)
It wasn’t that long ago that Kogan.com could have arguably been classed as a large cap company. But a 42% pullback from its 52-week high firmly puts it back in the mid cap space now. The catalyst for this decline has been a strong but not quite strong enough full year result, lack of guidance for FY 2019, and sizeable insider sales. While I am concerned by the lack of guidance or a trading update, I do feel its shares have now come down to a level that de-risks things. This could make it an opportune time to pick up shares.
Megaport Ltd (ASX: MP1)
Another option in the mid cap space that I think could be a great buy and hold investment is Megaport. It provides elasticity connectivity and network services across 221 data centres globally. In FY 2018 the growing popularity of its services led to customer numbers increasing 41% to 1,038 and revenue growing at an even quicker rate of 85% to $19.8 million. With demand for its services continuing to increase as its footprint expands, I believe the future is bright for this tech share.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Kogan.com 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.