Why I would buy CBA and DroneShield shares after selloffs this week

Selloffs can make investors uncomfortable.

They can also create better buying opportunities when the long-term story remains intact.

That is how I am looking at two ASX shares that have come under pressure this week. One is a market-leading bank. The other is a much higher-risk growth stock exposed to a powerful defence theme.

The road could be bumpy for both, but I would still be willing to buy with a long-term view.

Commonwealth Bank of Australia (ASX: CBA)

CBA shares were sold down after the bank’s third-quarter update, and I can understand why the market reacted that way.

The result was solid rather than spectacular, and the stock had been trading on a very demanding valuation. When expectations are high, even a reasonable update can disappoint.

But I think the bigger picture is more important.

CBA remains Australia’s highest-quality major bank in my view. It has a powerful deposit franchise, deep customer relationships, strong digital capability, and a brand that gives it an advantage few competitors can match.

Those qualities are valuable through the cycle.

The Australian economy may be entering a more difficult patch, with higher fuel prices, inflation pressure, and interest rates weighing on households and businesses. That could mean more volatility for bank shares in the short term.

But CBA is exactly the type of bank I would want to own through that environment. It has the scale, balance sheet, and customer base to keep generating strong profits even when conditions become less favourable.

The share price may still not be cheap, even after the fall. That is why I would be patient rather than rushing in.

But if the market keeps marking CBA down, I think long-term investors could be getting a rare chance to buy a first-class ASX blue chip at a better price.

DroneShield Ltd (ASX: DRO)

DroneShield is a very different proposition.

Its shares came under pressure after the company advised that it had received an ASIC notice requiring it to provide reasonable assistance with an investigation.

The investigation relates to announcements and information provided to the ASX in November 2025, as well as trading in DroneShield shares the same month. The company said it will cooperate fully and that it is unclear what action, if any, may result.

This clearly adds risk.

Governance issues and regulatory investigations can weigh heavily on confidence, especially for a growth stock where sentiment is already important.

Even so, I think investors should separate the near-term uncertainty from the long-term market opportunity.

DroneShield develops artificial intelligence-based platforms that protect against advanced threats such as drones and autonomous systems. Its customers include military, government, law enforcement, critical infrastructure, and airports.

That market still looks very attractive to me.

Drones are becoming cheaper, more capable, and more common in modern conflict and security planning. Defence forces and civilian organisations are increasingly having to think about how to detect, track, and respond to drone threats.

That gives DroneShield a strong thematic tailwind if it can keep converting demand into contracts, scaling production, and maintaining technology leadership.

I would treat this as a higher-risk holding. The ASIC investigation needs to be watched closely, and the share price could remain volatile. But for investors comfortable with that risk, I think the long-term counter-drone opportunity remains compelling.

Foolish takeaway

CBA and DroneShield have very different risk profiles.

CBA is a high-quality blue-chip bank facing valuation pressure and a more uncertain economy. DroneShield is a fast-growing defence technology business facing regulatory uncertainty and share price volatility.

Neither selloff should be ignored. But I do not think either destroys the long-term investment case.

For patient investors, I would be happy to consider buying both shares after this week’s falls, while accepting that the next few months may not be smooth.

The post Why I would buy CBA and DroneShield shares after selloffs this week appeared first on The Motley Fool Australia.

More reading

• 3 superannuation decisions you’ll regret in retirement
• After a rollercoaster start to the year, are Droneshield shares headed up?
• Down 10%: 3 key takeaways from CBA results
• BHP shares regain their market crown as CBA slides 10%
• Can DroneShield shares climb back to their $6.71 high?

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