If you're interested in investing in the mid cap side of the market, then I have good news for you.
At this side of the market, I believe there are a good number of shares that have the potential to grow strongly over the next decade.
Two mid cap ASX shares that I would buy are listed below. Here's why I think they are top options for investors:
Jumbo Interactive (ASX: JIN)
I think Jumbo Interactive would be a good long term option for investors. It is a $770 million online lottery ticket seller and the operator of the Oz Lotteries website. The latter website is the company's biggest generator of revenue and resells tickets on behalf of gambling giant Tabcorp Holdings Limited (ASX: TAH). These two companies have worked together for many years and recently signed a new long term reseller agreement. And while this agreement is admittedly on less favourable terms compared to previous agreements, it provides a lot of stability and allows the company to now focus on its Powered by Jumbo SaaS business.
I think this business will be the key driver of growth in the future. Especially given the massive market opportunity it has from the shift to online lottery playing. Management notes that it has a US$303 billion global total addressable market, with only 7% of this market online at the moment.
Nearmap Ltd (ASX: NEA)
Another mid cap share that I would buy is Nearmap. It is a $1.1 billion aerial imagery technology and location data company. Nearmap's products give businesses instant access to high resolution aerial imagery, city-scale 3D datasets, and integrated geospatial tools. These allow users to conduct virtual site visits, which enables informed decisions, streamlined operations, and meaningful cost savings. For example, instead of having to fly across the country to check out a site, users can use Nearmap instead.
Demand for its services has been growing very strongly and looks set to continue doing so following the launch of new products. This includes an artificial intelligence product which could be a game-changer in the industry. I believe this leaves it well-positioned to win a big slice of a highly fragmented market which is estimated to be worth US$10.1 billion in 2020.
