Five ASX mid-cap stocks which have clocked over 10% YTD returns

Summary

  • Several ASX-listed mid-cap firms have reported robust stock returns in the near past despite the coronavirus pandemic posing challenges to economy.
  • These include firms that have quickly grown from their small-cap origins.
  • Mid-cap stocks belong to companies with market capitalisation ranging from AU$2 billion to AU$10 million. 

Several ASX-listed mid-cap firms have reported robust stock returns in the near past despite the coronavirus pandemic posing challenges to economy. These includes firms that have quickly grown from their small-cap origins.

Mid-cap firms are particularly attractive to investors for whom small caps are too high on the risk scale. These stocks not only carry lower risk, their potential to generate outsized returns over the long term is also large.

Mid-cap stocks belong to companies with market capitalisation ranging from AU$2 billion to AU$10 million.

Here are five mid-cap stocks which have given a year-to-date (YTD) return of over 10% in 2021.

(However, one needs to do a thorough research before taking any exposure as sinusoidal market trends are evident)

Source: © Joingate | Megapixl.com

Dubber Corp Ltd (ASX:DUB)

Dubber Corp is a software company that operates a call recording, management, and access service through its cloud-based platform. Shares of this firm have risen just over 95% so far this year, with stock price rising from AU$1.75 to AU$3.42 (as of 5 August 2021).

In July, the company announced a successful institutional placement as part of an AU$110 million capital raise. The placement was the company’s first tranche of a two-tranche capital raise. The second tranche is expected to happen in the month of September after approval by shareholders.

Even as the company didn’t inform how it intends to use the raised funds, Dubber’s CEO said that the capital raise would allow the company to “not only become one of Australia’s leading technology companies, but a true global leader in our field”.

Dubber also aims to increase it reoccurring revenue by 156% to reach AU$100 million per year.

Audinate Group Ltd (ASX:AD8)

Shares of Audinate Group Ltd, a digital audio-visual networking technologies provider, have offered a return of over 80% so far this year, with its share price rising from AU$5.30 to AU$9.39.

In FY21, Audinate reported a 23% rise in US dollar revenue to US$25.0 million from US$20.4 million in the previous fiscal. It also witnessed a healthy finish to the year with the final quarter up 74% on the prior comparable period in US dollar revenue. In Australian dollar, the revenue stood at AU$33.4 million, compared to AU$30.3 million in FY20.

“While Audinate and our manufacturing customers have successfully navigated supply chain challenges to date, we expect continued uncertainty throughout the remainder of CY21,” said Audinate co-founder and CEO, Aidan Williams.

Source: © Outline205   | Megapixl.com

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Pro Medicus Ltd (ASX:PME)

The stock of health imaging technology firm has given a return of nearly 57% so far this year, with share price rising from AU$35.12 to AU$55.05.

The company’s earnings before interest and tax (EBIT) margin improved materially to 59% from 51% 1HFY21. Pro Medicus said that the EBIT surge was on account of rise in revenue and fall in operational expenditure.

The company expects the margins to further improve going forward. In the recent past the company won several large, multi-year agreements in both North America and Europe. The latest was an eight-year deal with The University of Vermont Health Network.

The US is seen as a major market for the companies operating in healthcare space due to its population size and amount of spending.

IDP Education Ltd (ASX:IEL)

Shares of this language testing and student placement company have rocketed nearly 41% so far this year, with its stock price rising from AU$20.63 to AU$29.05.

Last month, IDP Education announced that it had inked a deal to acquire the British Council’s Indian International English Language Testing System (BC IELTS India) operations.

With this, the company would soon be the only distributor of IELTS in the key Indian market.

The company expects that the transaction will be nearly 13% earnings per share accretive on a pro forma calendar year 2019 basis.

Bravura Solutions (ASX:BVS)

Shares of Bravura Solutions, a provider of software solutions for the wealth management and funds administration industries, have given a return of 12% so far this year, with its share price rising from AU$3.25 to AU$3.65.

Most popular among the various software solutions provided by the firm is Sonata wealth management platform, which enables financial advisers to engage with clients via computers or smart devices.

The company has acquired few firms in the last few years including FinoCamp, Midwinter, and Delta Financial Systems solutions.

In July, Bravura Solutions announced the appointment of Tim Bakkenes as head of sales and account management.

Meanwhile, the company’s net profit after tax (NPAT) was down 54% in 1H20 compared to the corresponding period of last year.

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