MENU

3 S&P/ASX Small Ordinaries shares I would buy today

Prior to today the S&P/ASX Small Ordinaries (Index: ^AXSO) (ASX: XSO) had fallen around 3% since the start of the year due largely to market volatility.

Considering the high-quality companies listed on the index, I don’t believe that this underperformance will continue for much longer.

I think that this could make it an opportune time to snap up a few shares from the Small Ordinaries.

Three I would consider today are listed below:

Bingo Industries Ltd (ASX: BIN)

I thought that this waste management company’s half-year result was a highlight during earnings season. The strong revenue and earnings growth it delivered was ahead of the market’s expectations, as was its full-year guidance increase. Considering its long-term growth potential from its national expansion plans, I think Bingo is worth considering as a buy today.

Nanosonics Ltd. (ASX: NAN)

The recent half-year results release by this infection control specialist was a bit of a disappointment and this has been reflected in its share price performance. The good news is that I think the decline in its share price could be a buying opportunity for investors willing to make a buy and hold investment. This is because the company’s trophon EPR product still only has a small share of the total addressable market despite its strong growth. And as it is arguably the best in its class, I think there’s the potential for a sizeable increase in its market share in the future.

Reliance Worldwide Corporation Ltd (ASX: RWC)

The shares of this plumbing products company performed strongly during earnings season thanks to an impressive half-year result. Thanks to double-digit growth in its core SharkBite Push‐To‐Connect fittings and accessories and the first full period inclusion of Holdrite, Reliance Worldwide grew sales by 28.3% on the prior corresponding period to $362.6 million. This better than expected performance led to management increasing its full-year EBITDA guidance by around 3.5% to between $150 million and $155 million.

Finally, here are three more top mid cap shares destined for a large cap future in my opinion.

The Disruptors: 3 Revolutionary Aussie Companies to Back for 2018

We’re living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Cochlear or REA Group.

We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Nanosonics Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.