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.

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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.

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