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:
Kogan.com Ltd (ASX: KGN)
I think that this fast-growing ecommerce company could be a good mid cap share to consider buying. This is because of its exposure to the continued rise in online shopping, its expansion into potentially lucrative verticals such as energy and mobile, and the launch of Kogan Marketplace. Although its performance was disappointing at the start of FY 2019, Kogan has bounced back and had a strong second half. Pleasingly, management appears confident this strong form can continue in FY 2020 and I wouldn't bet against it.
Pro Medicus Limited (ASX: PME)
Pro Medicus is a leading provider of a full range of radiology IT software and services to hospitals, imaging centres, and healthcare groups worldwide. The software company has experienced strong demand for its offering again this year, leading to it posting a whopping 59.4% increase in half-year revenue to $25.3 million. On the bottom line things were even better, with its underlying half-year net profit after tax rising 79.9% to $9.2 million. Given the quality of its products and its sizeable market opportunity, I believe Pro Medicus is capable of growing its earnings at an above average rate over the next decade.
Zip Co Ltd (ASX: Z1P)
This payments company has really caught the eye this year with some impressive sales growth. In the first half of FY 2019 Zip posted a 114% increase in revenue to a record $34.2 million. This was driven by another large increase in customer and merchant numbers, leading to record transaction volume of $495.2 million. The good news is that an update released this morning reveals that its performance was even better in the second half. Zip exceeded all its financial targets set at the beginning of FY 2019, including its transaction value target of $1 billion. Zip ultimately more than doubled its transaction value to $1.1 billion.
