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Why I would buy these mid cap growth stars in October

I think that the mid cap space is a great place to look for ideas on the Australian share market.

In this part of the market I believe there are a large number of shares with strong long-term growth potential that could one day propel them into the large cap space.

Three mid cap shares that I like right now are listed below:

Citadel Group Ltd (ASX: CGL)

This software and services company specialises in IT security and data management. Due to the growing amount of data being generated by businesses and how important it is to keep it secure, I believe Citadel is well-positioned to grow over the long-term. Especially given the popularity of its key Citadel-Information Exchange (Citadel-IX) cloud-based enterprise information management platform. This platform allows users to securely access or transfer proprietary and sensitive information remotely. Ltd (ASX: KGN)

I think this ecommerce company could be a great option for patient investors. Thanks to its fast-growing online retail business and expansion into countless other verticals, I believe can continue growing at an above-average rate for some time to come. Over the last 18 months I felt’s shares were always a touch expensive, but thanks to a recent pullback, I feel they now offer a compelling risk/reward for investors.

Macquarie Telecom Group Ltd (ASX: MAQ)

Although it has the word telecom in its name, Macquarie Telecom is nothing like Telstra Corporation Ltd (ASX: TLS). Thanks to its fast-growing Cloud Services business the company has been growing its profits at a very strong rate over the last couple of years. This is likely to continue over the medium term due to its plans to expand its data centre capacity significantly. I expect this expansion to put Macquarie Telecom in a position to capture the increasing demand for data centre services brought about by the cloud computing boom.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of Citadel Group Ltd. The Motley Fool Australia has recommended 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.

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