If you’re interested in investing in the mid cap side of the market then you’re in luck.
At this side of the market I believe there are a good number of shares that have the potential to grow strongly over the next decade.
Three mid cap ASX shares that I think are worth considering are listed below. Here’s why I like them:
Nearmap Ltd (ASX: NEA)
I think Nearmap is one of the most exciting mid cap shares on the local market. It is a leading aerial imagery technology and location data company that gives businesses instant access to high resolution aerial imagery, city-scale 3D datasets, and integrated geospatial tools. This helps users conduct virtual site visits, which enables informed decisions, streamlined operations, and ultimately significant cost savings. Demand for its products has been growing very strongly, leading to rapid annualised contract value (ACV) growth. This is expected to continue in FY 2020, with management guiding to ACV of $116 million to $120 million. This will be a 28.6% to 33% year on year increase. The good news is that this is still only a small slice of a market estimated to be worth US$10.1 billion in 2020.
Opthea Ltd (ASX: OPT)
Opthea is another exciting mid cap share to watch in the 2020s. It is a developer of novel biologic therapies for the treatment of eye diseases. The product in its portfolio that I’m most excited about is the OPT-302 combination therapy. Last year Opthea delivered exceptionally strong Phase 2b study results. If its Phase 3 trial proves just as successful then the future could be very bright for Opthea. This is because the current standard of care treatments for wet age-related macular degeneration and diabetic macular edema had sales of over US$3.7 billion and US$6.2 billion in 2018. Though, it is worth remembering that if its trial falls short of expectations, its shares are likely to come under significant pressure.
Pushpay Holdings Group Ltd (ASX: PPH)
Another mid cap ASX share to consider buying is Pushpay. It is a fast-growing donor management platform provider for the faith, not-for-profit, and education sectors. Due to the quality of its product, Pushpay has been growing its share of the U.S. market at a rapid rate in recent years. This has led to the company’s recurring revenues increasing very strongly. The good news is that it still has a long runway for growth. As a result, I remain confident that more of the same is coming in the 2020s. Especially after the recent acquisition of church management system provider Church Community Builder.
The post 3 exciting mid cap ASX shares to buy for strong returns in the 2020s appeared first on Motley Fool Australia.
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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 PUSHPAY FPO NZX. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia has recommended PUSHPAY FPO NZX. 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.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2020