If you're looking for strong returns in 2020, then I think the mid cap space is a great place to start.
At this side of the market there are a good number of shares which I believe have the potential to generate outsized returns for investors.
Three top mid cap ASX shares that I would buy in 2020 are listed below. Here's why I like them:
Audinate Group Ltd (ASX: AD8)
I think that Audinate would be a very good option for investors in 2020. It is a provider of hardware and software solutions to the audio/visual (AV) market. The key product in its arsenal is the flagship and award-winning Dante media networking solution. It is a global leader in AV connectivity, eliminating the need for traditional analogue connections. The company has been experiencing incredibly strong demand for Dante, which led to it posting a 34% increase in revenue to US$20.3 million in FY 2019. Given the quality of its technology and its sizeable addressable market, I expect similarly strong growth in FY 2020.
Helloworld Travel Ltd (ASX: HLO)
Another mid cap ASX share to consider buying is Helloworld. It is an integrated travel company which has been growing at a solid rate over the last few years. Pleasingly, this positive form has carried over into FY 2020. In the first quarter it achieved total transaction value of $1.878 billion and unaudited EBITDA $24.7 million. This was a 10.4% and 7.7% increase, respectively, on the prior corresponding period. Another positive is its current valuation. Helloworld's shares are changing hands at a lowly 12.5x estimated full year earnings and offer a trailing fully franked 4.4% dividend yield.
Kogan.com Ltd (ASX: KGN)
A final mid cap ASX share to consider buying is Kogan. With consumers spending more and more money online each year and this trend set to continue for a long time to come, I believe this ecommerce company is well-placed to deliver strong earnings growth over the long term. In the near term, I expect Kogan to post a strong FY 2020 result thanks to its expansion into potentially lucrative verticals such as energy and mobile, and the launch of Kogan Marketplace.
