In the mid cap space I believe there are a good number of shares that have the potential to grow strongly over the next decade, potentially generating market-beating returns for shareholders.
Three which I think would be great options for long-term focused investors are listed below:
Collins Foods Ltd (ASX: CKF)
Collins Foods is a quick service restaurant operator which could be a great long term option for investors. This is due to the sizeable expansion opportunity that its KFC network has in the European market and the roll out of the Taco Bell brand across several Australian states. The latter could be a key driver of growth over the medium term if it proves to be successful. Overall, I believe the company is well-placed to grow both its earnings and dividend at a solid rate over the next decade.
Megaport Ltd (ASX: MP1)
Megaport is an elasticity connectivity and network services company. Its service allows users to increase and decrease their available bandwidth in response to their own demand requirements. The benefit of this is that it means they don't need to be tied to fixed service levels on long-term and expensive contracts and can just use what they need, when they need it. Thanks to the quality of its service and the cloud computing boom, demand for its services has been growing very strongly and led to Megaport reporting a 78% increase in revenue in FY 2019
Zip Co Ltd (ASX: Z1P)
Zip Co is a fast-growing buy now pay later platform provider. It caught the eye in FY 2019 when it reported a massive 108% lift in transaction volume to $1,128.5 million and a 138% increase in revenue to $84.2 million. This was driven by an 80% increase in customer numbers to 1.3 million, a 54% jump in partner numbers to 16,000, and a staggering 154% increase in transactions processed to 4.8 million. Management appears confident that this strong growth will continue in FY 2020 and is aiming to almost double both its active customer numbers and annualised transaction volume this year. I wouldn't bet against the company achieving this given the strong trends in the BNPL industry and its expansion into the UK and US.
