One of my favourite areas of the share market to invest is the mid cap space.
I believe at this side of the market there are a large number of shares with the potential to grow meaningfully over the long term.
Three shares which tick a lot of boxes for me right now are listed below. Here’s why I would buy them:
BWX Ltd (ASX: BWX)
The company behind the Sukin skincare range has seen its share price collapse this year amid concerns over slowing sales, the disappointing performance of its acquisitions, and the withdrawal of a takeover approach. I feel the selloff has been largely overdone, potentially making BWX a bargain buy now. However, it is worth noting that its annual general meeting is next week. So, it could be best holding fire until then to buy shares. Alternatively, you could look at buying half now and half then.
Citadel Group Ltd (ASX: CGL)
Although the shares of this leader in the development and delivery of managed technology solutions have recently hit a 52-week high, I don’t believe for a second that it is too late to invest. Especially if you’re happy to hold onto its shares for the long-term. Citadel delivered strong growth in FY 2018 thanks to record new contract wins and scalable cloud-enabled software sales. And thanks to the growing importance of data security and the increasing amount of data being generated, I feel demand for its software is likely to grow in the coming years and support its earnings growth.
Helloworld Travel Ltd (ASX: HLO)
On Monday this integrated travel company’s shares sank lower after rival Flight Centre Travel Group Ltd (ASX: FLT) released a disappointing trading update for the first quarter of FY 2019. I believe this selloff was unnecessary as Flight Centre’s issues appear to be largely company specific. In light of this, I feel now could be an opportune time to pick up shares in Helloworld at a great price. At present its shares are priced at just 20x earning despite management expecting earnings growth in the range of 16.5% and 23% this year.
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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 BWX Limited and Flight Centre Travel Group Limited. The Motley Fool Australia owns shares of Citadel Group 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.