Forget Fortescue shares: This ASX stock could be poised for a bull run in 2024

Business has been booming for this small-cap ASX stock.

| More on:
flying asx share price represented by man flying remote control drone

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

On the hunt for an ASX stock that looks well-placed for a bull run in 2024?

It may be tempting to look at big-name companies like S&P/ASX 200 Index (ASX: XJO) mining stock Fortescue Metals Group Ltd (ASX: FMG).

Indeed, Fortescue shares have had a terrific run over the past year.

The Fortescue share price is up 28% over 12 months, and the ASX 200 miner has gained 44% just since 13 September.

But there's a smaller ASX stock that's been outpacing those juicy gains. And it could have an even bigger year ahead in 2024.

ASX stock defending the skies

The company in question is Droneshield Ltd (ASX: DRO).

The ASX tech stock is up 66% over 12 months, with shares having gained a whopping 164% since the 28 June lows.

Business has been booming for the drone defence company. And you need only skim global news headlines to see why.

From nation-based militaries to paramilitary organisations, the use of armed drones in global conflicts is increasing at a frightening pace. The Australian Navy has recently come under scrutiny for its own vulnerabilities to potential hostile drone attacks.

For the December quarter, the ASX stock reported an all-time high of $48 million in customer cash receipts and grants. With 80% of its revenues derived from repeat customers, that adds some sustainability to the outlook of future sales.

And the company pleased investors by recording its maiden before tax profit of $4 million for calendar year 2023. That was a big improvement from the loss of $2.9 million in 2022.

Droneshield's balance sheet also looks solid, with the company holding a cash balance of $58 million as at 31 December.

On the growth front, the ASX stock had a $30 million contracted order backlog entering 2024 along with a sales pipeline of more than $400 million.

At the time of the update, Droneshield CEO Oleg Vornik said, "We are seeing continuing peak demand from our customer base globally … and we are ready operationally to meet this demand."

So, if you're looking for an ASX stock poised for a bull run in 2024, forget Fortescue shares and have a deeper look into Droneshield.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. The Motley Fool Australia has recommended DroneShield. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Opinions

Man looking happy and excited as he looks at his mobile phone.
Opinions

Why I think this small ASX dividend share is a great buy today

This small business offers a lot of what I like for passive income.

Read more »

A corporate man crosses his arms to make an X, indicating no deal.
Opinions

How to invest: my 3 biggest ASX share dealbreakers

I want to avoid certain things with my investing.

Read more »

Smiling couple looking at a phone at a bargain opportunity.
Opinions

Why I think these 2 ASX shares are bargain buys

I like the value offered by these stocks.

Read more »

Smiling couple sitting on a couch with laptops fist pump each other.
Opinions

My favourite ASX 200 stock in my portfolio right now

This business has a lot going for it, in my opinion.

Read more »

A man casually dressed looks to the side in a pensive, thoughtful manner with one hand under his chin, holding a mobile phone in his hand while thinking about something.
Opinions

Investing in high-yield ASX stocks has two major negatives

High-yield stocks do have downsides.

Read more »

A young woman in a red polka-dot dress holds an old-fashioned green telephone set in one hand and raises the phone to her ear representing the Telstra share price and the opportunity for investors in FY23
Opinions

The Telstra share price hit a 52-week high this week, is it still a buy?

Is buying Telstra still a good call after its rise?

Read more »

a man puts his hand on the nose of a bull in a lovely green rural setting with the bull raising his nose to meet the man's touch.
Opinions

Why this ASX 300 share looks like a fantastic buy right now

This stock looks like an excellent investment right now.

Read more »

Two female executives looking at a clipboard together.
Opinions

3 ASX share investing lessons from April

April was just one month, but there are multiple lessons from it.

Read more »