One area of the market which I think has a number of exciting investment options at the moment is the mid cap space.
Three shares in the space which I think could have the potential to be blue chips in the future are listed below. Here's why I like them:
Bingo Industries Ltd (ASX: BIN)
If you're outside New South Wales you might not be overly familiar with Bingo Industries. But that is likely to change over the next decade thanks to the company's plan to expand its waste management services nationwide. I think this growth plan, its defensive characteristics, the industry's high barriers to entry, and Bingo's highly profitable operations make it a great option for investors. Its recent half-year result saw the company deliver revenue and earnings growth well ahead of the market's expectations. I expect more of the same in the second-half.
BWX Ltd (ASX: BWX)
Unlike Bingo, BWX delivered a first-half result below the market's expectations. This has led to its shares being thoroughly sold off over the last couple of weeks. Whilst I was disappointed with its performance during the half, I think the selloff was hugely overdone and has left its shares trading at a very attractive price. Especially given the international expansion of its Sukin brand and the growth potential this provides. I'm not alone in this view, earlier this week Goldman Sachs placed BWX on its conviction buy list with a massive $8.25 price target on its shares.
Helloworld Travel Ltd (ASX: HLO)
Another strong performer during earnings season was this travel management company. Like many of its travel industry peers, Helloworld delivered a half-year result ahead of expectations when it posted half-year profit before tax of $26 million. This was an impressive 39.2% increase on the prior corresponding period. With demand for its integrated service offering remaining strong, management appears confident that it will have an equally strong second-half.
