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Is now the time to buy Nearmap and these mid cap ASX growth shares?

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. 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.

And don't miss this fourth mid cap share which could be better than the rest of them thanks to its massive market opportunity.

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James Mickleboro owns shares of Collins Foods Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia has recommended Collins Foods Limited, ltd, and Nearmap 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.

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