Why I would buy Nanosonics and these mid cap ASX growth shares

Why I would buy Nanosonics Ltd (ASX:NAN) shares and two others in the mid cap space this week…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

One area of the market which I continue to believe is home to a large number of quality options for investors is the mid cap space.

Three top mid cap shares which I believe could one day become large caps are listed below. Here's why I think they would be great long-term investments:

Bellamy's Australia Ltd (ASX: BAL)

This infant formula company's shares have come under significant pressure over the last 12 months due to the surprisingly lengthy delay in receiving the SAMR accreditation required to sell its organic products in China. Bellamy's applied for this accreditation at the end of 2017 and it has still not been granted. Unfortunately, this means that its sales have been impacted significantly and profits are likely to be lower this year. However, I remain confident that SAMR accreditation is coming and will give its sales a major lift when it does. This could make it worth being patient with Bellamy's and buying shares with a long term view.

Nanosonics Ltd (ASX: NAN)

One of my favourite options in the mid cap space is this leading infection control specialist. Nanosonics has been experiencing strong demand for its industry-leading trophon EPR disinfection system for ultrasound probes. This has led to strong sales of both the product and the consumables that it uses. Given its large market opportunity and the quality of the product, I believe it is well-positioned to deliver strong sales growth for some time to come. Especially with management aiming to add to the trophon EPR product with the launch of several new products targeting unmet needs in the near term.

Webjet Limited (ASX: WEB)

A third and final mid cap share to consider buying is Webjet. I believe the online travel agent has very strong long-term growth prospects thanks to the growing popularity of its B2B and B2C brands and the continued shift to online booking. In addition to this, the company has a track record of taking advantage of the highly fragmented travel booking market by making successful earnings accretive acquisitions. If Webjet continues this trend in the coming years, then I expect there's a strong chance its shares will generate outsized returns again over the next decade.

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 Nanosonics Limited. The Motley Fool Australia has recommended Bellamy's Australia, Nanosonics Limited, and Webjet 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.

More on Growth Shares

A young well-dressed couple at a luxury resort celebrate successful life choices.
Growth Shares

Where to invest $2,500 in ASX shares in August

Let's see which shares are being tipped as buys for next month.

Read more »

Person pointing at an increasing blue graph which represents a rising share price.
Growth Shares

What to buy now with the ASX at a record high

Analysts think these shares could still rise strongly from current levels.

Read more »

A young man looks at a stylised investment graph superimposed on an exterior office building backdrop.
Growth Shares

Where to invest $10,000 in ASX 200 stocks today

Analysts think these high-quality shares are in the buy zone for investors right now.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Growth Shares

Two ASX industrials shares with buy recommendations

One broker believes these growth shares are set to rise.

Read more »

Man smiling at a laptop because of a rising share price.
Growth Shares

I think these 2 exciting ASX growth shares are buys today

These stocks could deliver big returns.

Read more »

a man in a business suit and carrying a laptop stands smiling with hand in pocket outside a large office building in a city environment.
Growth Shares

Buy these 2 impressive ASX 200 shares in July: experts

Experts are bullish about these two businesses.

Read more »

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price
Growth Shares

3 ASX 200 shares set to dominate the next decade

Let's see why these shares could be great long term picks for Aussie investors.

Read more »

A group of businesspeople clapping.
Growth Shares

3 ASX growth shares with 10-year compounding potential

Let's see which shares are being tipped as buys for growth investors.

Read more »