Interested in adding some mid cap ASX shares to your portfolio? Then you might want to take a look at the ones listed below.
I believe these three ASX mid cap shares have the potential to generate strong returns for investors over the 2020s:
EML Payments Ltd (ASX: EML)
EML Payments is a payments company with a focus on pre-paid cards and digital gift cards. It provides its services to a wide range of businesses such as shopping centres, bookmakers, and salary packaging companies. Unfortunately, its meaningful exposure to shopping malls means the pandemic will inevitably weigh on its second half performance. However, I believe it is well-positioned to accelerate its growth once the crisis passes. Especially given the recent acquisition of UK-based Prepaid Financial Services. This has diversified its offering and gives EML access to the emerging field of banking as a service.
Jumbo Interactive (ASX: JIN)
Another mid cap ASX share to consider buying is Jumbo. I'm a big fan of the online lottery ticket seller due to its growing Software as a Service (SaaS) business and its long term agreement with Tabcorp Holdings Limited (ASX: TAH). Although the latter agreement is on less favourable terms compared to previous agreements, it provides stability and allows the company to focus on the international expansion of its SaaS business. This business is expected to play a key role in the company achieving its target of $1 billion in ticket sales through its platform by FY 2022. This will be triple what it achieved in FY 2019.
Nanosonics Ltd (ASX: NAN)
A final mid cap share to consider buying is Nanosonics. The infection prevention company is one of my favourite growth shares on the Australian share market due to its extremely positive long term outlook. This is thanks to the sustained demand for its industry-leading trophon EPR disinfection system for ultrasound probes and the expansion of its product portfolio. The latter will see Nanosonics launch a number of new infection control products targeting unmet needs in the coming years. Given its reputation in the industry and existing distribution channels, I'm optimistic that these products will sell well and drive further strong earnings growth over the 2020s.
