3 ASX midcap growth shares to buy in February

Citadel Group Ltd (ASX:CGL) shares are one of three in the mid cap space that I think investors ought to look at next month…

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In the midcap space I believe there are a great number of growth shares that have the potential to generate strong returns for investors over the long term.

Three that I think could be in the buy zone right now are listed below. Here's why I think investors ought to pick them up in February:

Citadel Group Ltd (ASX: CGL)

Citadel Group is a software and services company specialising in secure enterprise information management in complex environments. I believe its Citadel-Information Exchange (Citadel-IX) cloud-based enterprise information management platform has enormous potential and expect it to underpin its overall earnings growth over the coming years. This platform allows users to securely access and transfer proprietary and sensitive information remotely.

Collins Foods Ltd (ASX: CKF)

Another mid cap share to consider is this quick service restaurant operator. It has a growing network of KFC restaurants in Australia and Europe and recently announced the rollout of the Taco Bell brand across several Australian states. I think this rollout and its European expansion with the KFC brand have given it a long runway for growth and put it in a position to deliver above-average earnings growth over the coming years.

Nanosonics Ltd (ASX: NAN)

This infection control company is another mid cap share which I feel has the potential to generate strong returns for investors over the next decade. Nanosonics' trophon EPR product is an automated system delivering effective, efficient, and safe high-level disinfection of ultrasound probes. In FY 2018 the company grew its installed base by 25% to 17,740 units. Given that many regard the product as the best in its class, I wouldn't be surprised to see its installed base grow by a similar level this year. Management estimates the global market opportunity to be 120,000 units currently.

Motley Fool contributor James Mickleboro owns shares of Collins Foods Limited. The Motley Fool Australia owns shares of and has recommended Nanosonics Limited. The Motley Fool Australia has recommended Collins Foods Limited. 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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