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Why I would buy Megaport and this exciting mid cap ASX share

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If you’re looking for investment ideas, then I think the mid cap side of the market is a great place to start. This is because I believe there are a number of companies that have the potential to grow at a strong rate over the next decade and provide market-beating returns for investors.

Two top mid cap ASX shares to consider are listed below. Here’s why I like them:

Megaport Ltd (ASX: MP1)

The first mid cap ASX share to look at 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. This means that users can consume the bandwidth they need when they need it, rather than be tied to fixed service levels on long-term and expensive contracts. Demand has been exceptionally strong for Megaport’s services this year, thanks to the accelerating shift to the cloud. The good news is that more and more computer infrastructure is expected to go from local servers to cloud providers like Microsoft’s Azure, Amazon’s AWS, and Google Cloud in the future. I believe Megaport is well-placed to benefit from this trend.

Pro Medicus Limited (ASX: PME)

Another mid cap ASX share that I think investors should consider is Pro Medicus. It is a leading provider of a full range of radiology IT software and services to hospitals, imaging centres, and healthcare groups worldwide. One key product in its portfolio is the Visage 7 Enterprise Imaging Platform. Management notes that it enables imaging organisations to do things they have always wanted to do, but never could. It offers immediate differentiation for imaging organisations seeking to leapfrog the status quo of commoditised legacy PACS. Given the quality of its products and its sizeable market opportunity, I believe Pro Medicus is capable of growing its earnings at an above average rate over the next decade.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

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 and recommends MEGAPORT FPO. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus 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.

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