- Mid-cap stocks can produce healthy growth while not posing an excessive risk to the investment.
- Mid-cap stocks are companies with a market capitalisation in between AU$2 billion and AU$10 billion.
- Several ASX-listed mid-cap stocks have delivered decent returns in the last one year amid the ongoing pandemic.
Investors eyeing significant returns met with depressing trends as the sell-off continues in the global financial markets. While the US tech stocks slammed by soaring Treasury bond yield plummeted on Tuesday, ASX 200 also suffered the brunt of weak commodity prices.
At the same time, the third wave of COVID-19 in Australia is chipping away the wealth of the Australian retail sector, which saw its sales dwindle by AU$1.9 billion in a month.
Despite the pandemic, the Australian economy is positioned to grow, albeit slowly, as highlighted by the Organisation for Economic Co-operation and Development (OECD). On this account, investors continue to scan such stocks which can produce healthy growth while not compromising heavily on stability.
Mid-cap stocks, often being the middle ground between large-cap and small-cap stocks, can prove a perfect sanctuary for such investments.
Let us skim through five mid-cap stocks on the ASX with significant returns in the last one year.
Pilbara Minerals Limited (ASX:PLS)
Emerging lithium and tantalum producer, Pilbara Minerals achieved record shipments of spodumene concentrate during the June 2021 quarter, exceeding guidance of 75,000-90,000 dmt. Meanwhile, mining quantities and production activities continued to increase.
The Company is targeting to expand production capacity to 560-580,000 dmt of spodumene concentrate by mid of the next year, leveraging its Pilgan Processing Plant (operating at capacity of ~330,000tpa) and Ngungaju Processing Plant.
The recent development comes against the backdrop of strong global demand for lithium materials and soaring prices of lithium carbonate and lithium hydroxide.
Lovisa Holdings Limited (ASX:LOV)
Fast fashion and jewellery store retailer, Lovisa Holdings saw its revenue edge up by 18.9% in FY21 over the pcp, despite the market headwinds in the first quarter of the financial year.
The continued international store roll out has driven the future growth for Lovisa, with store network increasing to 544 stores at the end of the financial year.
Trading for the first 8 weeks of FY22 has seen continued strong performance, with total sales for the period up by 56% compared to the same period in FY21.
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NOVONIX Limited (ASX:NVX)
The Brisbane-based company that develops and supplies in-demand materials for lithium-ion batteries has witnessed continued strong revenue growth across its Battery Technology Solutions. As part of NOVONIX Anode Materials Activities, the Company closed on new anode materials facility in Chattanooga, TN, which will accommodate a planned 8K+ tonne per year production.
US-based leading global manufacturer of specialty coke, Phillips 66 will acquire a 16% stake in NOVONIX. Moreover, NVX was added to ASX 300 in the September 2021 Quarterly Rebalance of the S&P/ASX Indices.
Pinnacle Investment Management Group Limited (ASX:PNI)
Australian investment management firm, Pinnacle Investment Management Group witnessed an increase of 108% in net profit after tax (NPAT) from AU$32.2 million in FY20. As at 30 June 2021, Aggregate Affiliates’ funds under management (FUM) was AU$89.4 billion while Aggregate Retail FUM was AU$20.3 billion.
The Company has kicked off the 2022 financial year with FUM in excess of 20% higher than the firm’s average for FY21. The Company also plans to invest in and seed new Affiliates, which might affect its profitability in short term.
Pro Medicus Limited (ASX:PME)
Leading health imaging company Pro Medicus announced a net profit of AU$30.9 million for the year ended 30 June 2021. Furthermore, the Company signed research collaboration agreements with two of the most prestigious North American academic healthcare institutions, NYU Langone Health and Mayo Clinic.
The Company continues to witness a wide spectrum of opportunities across cloud, on-premise, academic, and non-academic IDN space.