Why I think DroneShield and 2 more ASX shares are buys

The ASX is home to a wide range of companies, from mature dividend payers to high-growth businesses.

Right now, a few ASX growth shares stand out to me for different reasons. One operates in a rapidly expanding defence technology market, another is benefiting from structural growth in financial advice platforms, and the third has built a global leadership position in medical technology.

Here are three ASX shares I think could be worth buying.

DroneShield Ltd (ASX: DRO)

DroneShield is one of the most fascinating companies on the ASX right now.

The business specialises in counter-drone technology, providing solutions designed to detect and neutralise hostile drones. As drones become more widely used in both civilian and military settings, the need for systems that can defend against them is increasing rapidly.

What attracts me to DroneShield and its shares is the scale of the opportunity. Defence spending is rising globally and counter-drone technology is becoming an important part of modern security systems. DroneShield’s technology is already being used by military, government, and law enforcement customers around the world.

This is still a relatively small company compared with many defence contractors, which means it has plenty of room to grow if adoption continues to increase.

In my view, that combination of a large addressable market and proven technology makes DroneShield a particularly interesting long-term growth story.

HUB24 Ltd (ASX: HUB)

HUB24 is a company I keep coming back to when I think about structural growth on the ASX.

The company’s platform provides technology and investment solutions used by financial advisers to manage client portfolios. Over the past several years, it has consistently taken market share as advisers move toward modern platforms that offer better functionality and service.

What I like about HUB24 is that it is benefiting from multiple long-term tailwinds at the same time. The shift toward professional financial advice continues, the wealth management industry keeps growing, and advisers are increasingly consolidating onto a smaller number of high-quality platforms.

As funds under administration rise, the platform can generate more revenue without needing to increase costs at the same pace. That creates operating leverage and helps drive strong earnings per share growth.

Personally, I think HUB24 still has a long runway for expansion as the Australian wealth management industry continues to evolve.

ResMed Inc (ASX: RMD)

ResMed is another ASX share that I believe has a powerful long-term growth story.

The company develops medical devices and software designed to treat sleep apnoea and other respiratory conditions. These products are used by millions of patients around the world.

What stands out to me is the structural demand for its products. Sleep apnoea remains significantly underdiagnosed globally, and awareness of the condition continues to increase.

ResMed also has a strong competitive position thanks to its best-in-class technology, brand recognition, and growing ecosystem of digital health tools that connect patients, clinicians, and healthcare providers.

In my view, that combination of medical demand and technological leadership makes ResMed one of the most compelling long-term healthcare shares on the ASX.

Foolish takeaway

These companies are each benefiting from long-term structural trends that could support growth for many years to come.

For investors looking for ASX shares with strong long-term potential, I think all three are worth serious consideration.

The post Why I think DroneShield and 2 more ASX shares are buys appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in DroneShield and Hub24. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield, Hub24, and ResMed and is short shares of DroneShield. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.