I think the recent market selloff has created a large number of buying opportunities in the mid cap space.
Three mid cap shares that I would consider buying this week after recent declines are listed below. Here’s why I like them:
Bapcor Ltd (ASX: BAP)
Over the last few weeks the Bapcor share price has been dragged around 10% lower from its 52-week high. I think this could be an opportune time to pick up the shares of one of Australia’s largest suppliers of car parts and accessories. It was a strong performer in FY 2018 and posted pro forma net profit after tax growth of 31.6% to $86.5 million thanks to positive performances from all its business divisions. The good news is that I feel confident that this strong form can continue in FY 2019 thanks to its expansion plans and organic growth.
Helloworld Travel Ltd (ASX: HLO)
This integrated travel company’s shares have pulled back by 9.5% from their 52-week high. I think this is a great opportunity to pick up shares in a company that could grow strongly over the coming years. In FY 2018 Helloworld posted an impressive 48.1% increase in profit after tax to $32 million. Management expects the strong form to continue in FY 2019 and has provided earnings growth guidance in the range of 16.5% and 23%.
Macquarie Telecom Group Ltd (ASX: MAQ)
Recent share price weakness due to market volatility means that the Macquarie Telecom share price is down 7% from its 52-week high. In light of this, I think now could be a great time to pick up shares with a long term view. Although it has the word telecom in its name, don’t be fooled into thinking this is a slow-growing telco company. Thanks to its fast-growing data centre business and plans to expand its capacity significantly in the coming years, I believe Macquarie Telecom is well-positioned to deliver strong earnings growth for many years to come.
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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 and has recommended Bapcor. 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.