While the market selloff has been bitterly disappointing for investors, I wouldn’t let it put you off investing.
Especially given the way it has pulled down a good number of high quality shares to attractive entry levels.
Three mid caps that I think are great value right now are listed below:
Bingo Industries Ltd (ASX: BIN)
This waste management company’s shares have fallen 22% since peaking at $3.27 in September. This means that Bingo’s shares are changing hands at 22x earnings currently, which I feel is great value given its positive growth profile. In FY 2018 Bingo delivered a 44.8% increase in profits to $48.2 million and this year management expects EBITDA growth in the range of 15% to 20%. Though, this guidance does not include the benefits of its $577.5 million acquisition of Dial A Dump Industries.
Kogan.com Ltd (ASX: KGN)
This ecommerce company’s shares have been hammered in recent months, leaving them trading at 31x earnings. While this is not conventionally cheap, Kogan.com is expected to grow at an explosive rate over the coming years due to its leading position in a growing online retail market. However, if its growth fails to materialise as expected then there’s always a danger that its shares could drift even lower. Investors may want to play it safe by waiting for its trading update next month before making a move.
Paragon Care Ltd (ASX: PGC)
I think that this integrated services provider to both the healthcare and aged care markets would be a great option for investors. As well as having significant opportunities to grow through acquisitions following its $45.2 million placement of shares with China Pioneer, I believe Paragon Care’s recent expansion into New Zealand has given it a long runway for growth. Another bonus is that the company’s shares currently offer a trailing fully franked 4.5% yield.
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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 and Paragon Care 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.