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.
