The stocks headed for the ASX 20 (and 2 on the way out)

Buy Hold Sell, by Livewire Markets

Over the last five, 10, 15 and 20 years, mid-cap stocks have managed to outperform both their large and small-cap counterparts. They've done this with the same volatility as small caps and, over the last decade, they've grown earnings at around 7.5% per annum - more than double that of the small and large-cap indices.

So, why is this? According to Blackwattle's Tim Riordan and Auscap's Will Mumford, it all comes down to quality. These businesses are more likely to have established themselves with some sort of competitive advantage and have more of a growth runway ahead of them to expand globally.

Meanwhile, two-thirds of the ASX 20 - Australia's largest listed businesses - are either major banks, reliant on China's iron ore demand, or exposed to the declining long-term outlook for oil and gas.

So in this episode, Livewire's James Marlay was joined by Riordan and Mumford for a look at two companies that could push these incumbents out of the ASX 20.

Plus, they also provide a deep dive into the mid-cap segment of the market, the positive factors that investors should look out for, and some of the red flags to have on your radars.

Note: This episode was recorded on Wednesday 27 March 2024. You can read an edited transcript below.

https://www.livewiremarkets.com/wires/the-stocks-headed-for-the-asx-20-and-2-on-the-way-out/