One area of the market which I think is home to a lot of quality is the mid cap space.
Here you'll find a number of companies which are not only growing their sales at a rapid rate, but have significant market opportunities that could support this level of growth for many years to come.
Overall, I believe this puts them in a position to generate strong returns for investors over the next decade.
Three to consider buying are listed below:
Collins Foods Ltd (ASX: CKF)
This quick service restaurant operator continues to be one of my favourite mid cap growth shares. This is largely down to its strong long-term growth potential thanks to the expansion opportunity its KFC network has in the under-penetrated European market. Furthermore, if the roll out of the Taco Bell brand across several Australian states is a success, this could give its bottom line an additional boost in the coming years.
Kogan.com Ltd (ASX: KGN)
After a shaky 12 months this fast-growing ecommerce company has well and truly returned to form. A strong end to FY 2019 meant Kogan finished it with gross sales of $551.8 million and NPAT of $17.2 million. This was a 12% and 21.9% increase, respectively, on the prior corresponding period. Pleasingly, the company has started the new financial year how it finished the last, recording gross sales growth of 18.3% and gross profit growth of 32% during July. I suspect the successful launch of Kogan Marketplace could be driving some of this growth and expect more of the same over the course of FY 2020.
Nearmap Ltd (ASX: NEA)
Nearmap is a leading aerial imagery technology and location data company which I think has enormous potential. And with its shares down by over a third since peaking at $4.29 in June, now could be an opportune time to consider an investment. Especially given the strong demand for its services in both the ANZ and North American markets. I expect this strong demand, the quality of its product, and the launch of new products to lead to strong annualised contract value growth in FY 2020 and beyond.
