One of my favourite areas of the market to invest in is the mid cap space.
This is because the potential returns on offer from mid cap shares are far greater than large caps and generally carry less risk than small caps.
Three top mid cap shares that I would buy this month are listed below. Here’s why I like them:
Bravura Solutions Ltd (ASX: BVS)
Bravura Solutions is a provider of software and services to the wealth management and funds administration industries. With its shares down 26% since peaking at $6.27 in May, I believe now could be an opportune time to snap them up. The catalyst for this share price weakness was its failed takeover approach for GBST Holdings Limited (ASX: GBT). Whilst this was disappointing, I still believe it is capable of growing at a strong rate over the next decade regardless. This is due to the increasing popularity of its Sonata wealth management platform and the large market opportunity that it has.
Kogan.com Ltd (ASX: KGN)
Whilst this ecommerce company’s performance has been very volatile over the last couple of years, I’m optimistic that it has moved on from its issues and is poised for strong growth over the next decade. Especially given the ongoing rise in online shopping and the company’s expansion into potentially lucrative verticals such as energy and mobile. This was evident in the third quarter when the company reported a massive 96.4% increase in EBITDA.
Nanosonics Ltd (ASX: NAN)
Nanosonics is an infection control specialist which I believe could be a great buy and hold option due to its trophon EPR disinfection system for ultrasound probes. At the last count the product had an installed base of 19,310 units globally. Although this is a large number, it is still only scratching at the surface of a market opportunity estimated to be 120,000 units. Due to the quality of the product and favourable regulatory recommendations, I believe Nanosonics is well-placed to grow its market share materially over the next decade. Combined with the upcoming launch of new products targeting unmet needs and increasing sales of the consumables that the trophon EPR product requires, the future looks bright for this healthcare star.
And here are more growth shares which I think could be market-beaters over the next 12 months and beyond.
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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 Bravura Solutions Ltd and Nanosonics Limited. The Motley Fool Australia has recommended Kogan.com ltd. 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.