At the mid cap side of the market I believe there are a good number of shares which have the potential to grow into large caps over the next decade.
This could make it well worth investing in them with a long term view.
Three top mid cap ASX shares that I would buy right now are listed below. Here’s why I like them:
Clover Corporation Limited (ASX: CLV)
Clover is a producer of ingredients such as omega-3 oils that go into infant formula, supplements, and baby food. It has been growing at a very strong rate over the last few years thanks largely to increasing demand from infant formula manufacturers. Given potentially favourable changes to ingredient requirements in a number of key markets, I expect demand to grow over the coming years and drive strong earnings growth.
Electro Optic Systems (ASX: EOS)
I think Electro Optic Systems is a mid cap share to watch. It is Australia’s largest aerospace company and the largest defence exporter in the Southern Hemisphere. The key product in its portfolio in my eyes is its Remote Weapon System. This system allows the military to remotely operate weapons and machinery. Electro Optic Systems has partnerships with major global aerospace giants and a massive backlog of work that alone looks set to underpin solid earnings growth over the next few years.
Nearmap Ltd (ASX: NEA)
Nearmap is a leading aerial imagery technology and location data company. Its growth has taken a bit of hit this year due to the loss and downgrade of a number of large contracts. While this is disappointing, it is important to note that these customers have not been lost to the competition. I still believe Nearmap is head and shoulders above its rivals and well-placed to capture a greater slice of this growing global market over the next decade.
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More reading
- 2 ASX tech shares to buy with stellar growth prospects
- 30% off: 3 ASX 200 shares to buy on the cheap
- Where I’d invest $1,000 into ASX shares right now
- 2 ASX shares that every investor should own
- How to build your first ASX share portfolio
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 Clover Limited. The Motley Fool Australia owns shares of and has recommended Electro Optic Systems Holdings Limited and Nearmap Ltd. 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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