Earlier today I looked at a number of small cap tech shares which I think could generate strong returns for investors over the next few years.
But due to their high risk nature, not all investors will have a risk profile that allows them to invest in these shares.
In light of this, I thought I would take a look at a few mid cap shares which are arguably lower down the risk scale but still offer potentially strong returns.
Three to consider buying are listed below:
Kogan.com Ltd (ASX: KGN)
This $460 million ecommerce company is a mid cap share which I think is worth considering. Although its performance has been a little up and down over the last 18 months, Kogan returned to form in the second half of FY 2019 and reported strong profit growth. Pleasingly, management appeared confident that the good form would continue in FY 2020, especially following the successful launch of Kogan Marketplace. It described the launch as being "transformational" for the company and advised that it has been "overwhelmed by the response from both sellers and customers."
Lovisa Holdings Ltd (ASX: LOV)
Another mid cap share to consider buying is this $1.1 billion jewellery retailer. Although at 30x trailing earnings its shares trade at a premium to the rest of the retail sector, I believe its strong growth prospects justify this premium. Thanks to its international expansion, I expect Lovisa to generate above-average earnings growth over the next decade. I'm not alone in thinking this. Last month analysts at Morgans retained their add rating and lifted the price target on its shares materially to $13.15. The broker is particularly bullish on its U.S. expansion opportunity.
Webjet Limited (ASX: WEB)
Webjet is a $1.7 billion online travel agent which I think has a long runway for growth thanks to its increasingly popular travel booking brands. I believe their popularity, the ongoing shift to online booking, and management's aim of expanding its margins notably over the coming years, has positioned Webjet perfectly for above-average earnings growth for the foreseeable future. In addition to this, the company has the option of accelerating its growth through earnings accretive acquisitions in a highly fragmented market.
