I'm a big fan of investing in the mid cap space as I believe there are a good number of shares at this side of the market that have the potential to become much larger companies in the future.
Three mid cap shares that I think have the potential to grow significantly over the next decade are listed below. Here's why I like them:
Afterpay Touch Group Ltd (ASX: APT)
While it is still early days, I have been thoroughly impressed at the positive start that the Afterpay platform has had in the massive U.S. market. Management recently provided an update which revealed that its U.S. business processed $260 million of underlying sales in the first half of FY 2019, with annualised underlying sales in December in excess of $500 million. This strong start to life in the U.S. gives me the confidence to believe that the platform has global potential. However, due to the enormous amount of growth which has already been factored in, it is a high risk investment.
Helloworld Travel Ltd (ASX: HLO)
Helloworld Travel is a leading Australian integrated travel company which I think could be a great option for investors. Helloworld is part way through a turnaround which has been going exceptionally well. So much so, after delivering an impressive result in FY 2018, management is confident that it will deliver earnings growth in the range of 16.5% and 23% in FY 2019. And with margins tipped to widen over the coming years, I believe this solid profit growth could continue for some time to come.
Macquarie Telecom Group Ltd (ASX: MAQ)
I think that Macquarie Telecom could be a great option for investors wanting exposure to the cloud computing boom. The company may provide telco services to corporate and government customers, but the main driver of its future growth is expected to be its Hosting segment. This segment has been growing at an explosive rate over the last few years and could continue doing so for the foreseeable future after recent capacity expansions were made in order to capture the increasing demand for data centre services.
