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3 growing mid cap ASX shares to buy in March

One side of the share market which I think is a great place to look for investment ideas is the mid cap space.

In this area I believe there are a good number of shares that have the potential to grow strongly over the next decade, potentially generating outsized returns for shareholders.

Three mid cap shares that I would buy this month are listed below:

Collins Foods Ltd (ASX: CKF)

Collins Foods is a quick service restaurant operator with a growing network of KFC restaurants across Australia, Europe, and New Zealand. I expect the company’s expansion in an under-penetrated European market to be the main driver of growth over the next decade. Supporting this growth will be the rollout of the Taco Bell brand across several Australian states in the near term. Overall, I think it is a great option for investors that are prepared to make a patient buy and hold investment.

Helloworld Travel Ltd (ASX: HLO)

Helloworld is an integrated travel company which I think could be a great long-term investment. I’ve been very impressed at the way management has turned around the company’s performance and believe it is well-positioned to continue its growth over the coming years. This year management expects the company to deliver full year EBITDA growth of between 16.5% and 22.7%. I believe this makes its shares great value at 16x earnings.

Zip Co Ltd (ASX: Z1P)

This payments company caught the eye last month when it delivered a strong half year result. Zip posted a 114% increase in half year revenue to a record $34.2 million thanks to record transaction volume of $495.2 million. This was more than double the prior corresponding period. Cash EBTDA was positive a $2.4 million during the half, compared to a net outflow of $7.7 million a year earlier. If the company can build on this in the second half and into FY 2020 then it could prove to be a great investment.

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Motley Fool contributor James Mickleboro owns shares of Collins Foods Limited. The Motley Fool Australia owns shares of Helloworld Limited. The Motley Fool Australia has recommended Collins Foods 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.