The Motley Fool

Here are the 10 best mid-cap shares over the past year

Mid-cap shares tend to offer investors the best potential returns on a risk-adjusted basis as they’re usually already profitable, but still small enough for them to double profits or market cap in as little as 12 months for example.

It’s always worth looking at the best-performing mid-caps as they could be the blue-chips of tomorrow given the rapid rate of globalisation and technological change today. 

For example it looks like 6 of the top 10 companies below are using the rise of the Internet or digital economies to deliver their growth. So let’s take a look at them.

Source: Commsec, Sept 5, 2019.

iSignthis Ltd (ASX: ISX) is the client ID verification business for payments platforms. Its shares have shot up 700% over the past year perhaps over investor excitement related to its potential to help buy-now, pay-later payments providers. For the six months ending June 30 2019 it reported a statutory loss of $0.7 million on operating revenues of just $7.5 million, but it is forecasting positive EBIT for FY 2019 of $7.7 million. Therefore its current valuation over $1.4 billion looks huge versus its trailing financials. 

Polynovo Ltd (ASX: PNV) posted a loss of $3.19 million on revenue of $13.68 million for fiscal 2019. It uses its patented bioabsorbable polymer technology to help develop medical devices. 

Jumbo Interactive Ltd (ASX: JIN) is the online lottery retailer that operates and is benefiting as customers switch to buying tickets online rather than over-the-counter at a local shop.

Z1P Co. Ltd (ASX: Z1P) is the buy now, pay later start-up delivering some blockbuster growth in Australia thanks to the popularity of its ‘interest free’ service as an alternative to traditional credit card debt. 

Austal Limited (ASX: ASB) is the commercial and military shipbuilder that has won and delivered a couple of big contracts with the US Navy over the past 12 months. 

Dicker Data Ltd (ASX: DDR) is the IT hardware distribution business based out of Sydney. Its COO just bought another 20,000 shares on market at $6.90. This suggests he thinks the share price is going higher yet.

Gold Road Resources Ltd (ASX: GOR) is a WA-based gold production and exploration company that delivered first production in FY 2019 and has benefited from a soaring gold price.

Megaport Ltd (ASX: MP1) is an internet services group that lets enterprise clients adjust their amount of internet connectivity bandwidth in order to potentially save money for example. 

Saracen Mineral Holdings Ltd (ASX: SAR) is another junior gold miner benefiting as the gold price soars.

AP Eagers Ltd (ASX: APE) is the second-hand and new car dealership business that is attempting to complete a takeover of rival Automotive Holdings Group Ltd (ASX: AHG).

IPH Ltd (ASX: IPH) is the patent law firm that has benefited from an aggressive acquisition strategy and as the US dollar remains very strong. This is because the law firm commonly invoices clients in US dollars. 

NEW! Top 3 Dividend Bets for 2019

With interest rates likely to stay at rock bottom for months (or YEARS) to come, income-minded investors have nowhere to turn... except dividend shares. That’s why The Motley Fool’s top analysts have just prepared a brand-new report, laying out their top 3 dividend bets for 2019.

Hint: These are 3 shares you’ve probably never come across before.

They’re not the banks. Not Woolies or Wesfarmers or any of the “usual suspects.”

We think these 3 shares offer solid growth prospects over the next 12 months. Each of these three companies boasts fully franked yields and could be a great fit for your diversified portfolio. You’ll discover all three names and codes in "The Motley Fool’s Top 3 Dividend Shares for 2019."

Even better, your copy is free when you click the link below. Fair warning: This report is brand new and may not be available forever. Click the link below to be among the first investors to get access to this timely, important new research!

The names of these top 3 dividend bets are all included. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies move – we may be forced to remove this report.

Click here to claim your free copy right now!

Tom Richardson owns shares of Dicker Data Limited.

You can find Tom on Twitter @tommyr345

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Jumbo Interactive Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of MEGAPORT FPO and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia has recommended Jumbo Interactive Limited and MEGAPORT FPO. 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.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.