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These mid cap ASX shares could be market beaters in the 2020s

One area of the market that I think has a good number of quality long-term options for investors is the mid cap space.

Three mid caps which I believe could generate strong returns for investors over the next decade are listed below. Here’s why I like them:

BINGO Industries Ltd (ASX: BIN)

Although waste management is hardly an exciting industry to invest in, I’m optimistic that BINGO’s shares will provide exciting returns for investors over the next decade. This is thanks largely to its expansion plans and the recent game-changing acquisition of rival Dial a Dump Industries. This acquisition has allowed BINGO to be fully vertically integrated from collections to landfill and become the largest player in B&D waste in Sydney. It also provides BINGO some much-needed diversification and reduces its exposure to residential construction and collections. In the first half of FY 2020, BINGO reported a 50.7% increase in revenue to $271.2 million and a 67.9% jump in underlying EBITDA to $78.8 million.

Bravura Solutions Ltd (ASX: BVS)

Bravura Solutions is a fintech company that provides software products and services to the wealth management and funds administration industries in the Asia, Europe, Middle East, and Africa regions. It was a strong performer in the first half of FY 2020, delivering a 21% increase in net profit after tax to $19.8 million. This was boosted slightly by the recent acquisitions of Midwinter and FinoComp, which supported the core Sonata wealth management platform. This is a next generation wealth management administration system which allows users to connect and engage with their clients anytime, anywhere, via computers, tablets or smartphones. Demand has been strong for Sonata in recent years and I expect more of the same in the future thanks to its sizeable addressable market.

Megaport Ltd (ASX: MP1)

Another mid cap share to consider is Megaport. It is an elasticity connectivity and network services company. This service allows its customers to increase and decrease their available bandwidth in response to their own demand requirements, rather than be tied to fixed service levels on long-term and expensive contracts. As with the others, it has been a positive performer in FY 2020. During the first half, Megaport reported revenue of $25.9 million, up 70% on the prior corresponding period. The good news is that with larger and larger amounts of computer infrastructure going from local servers to cloud providers, Megaport appears well-placed to continue its strong form in the 2020s.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of MEGAPORT FPO. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd. The Motley Fool Australia has recommended 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.