Why I’d buy DroneShield and these ASX 200 shares next month

As we head into April, I find myself looking for a mix of opportunity and resilience.

Markets have been unsettled, some sectors have sold off sharply, and sentiment is still a bit fragile. 

But that is often when I like to start building positions in businesses with strong long-term potential.

Right now, three ASX shares stand out to me for very different reasons.

DroneShield Ltd (ASX: DRO)

DroneShield is one of the more interesting opportunities on the market right now, in my opinion.

What draws me to the company is its exposure to a rapidly evolving area of defence technology.

The use of drones in modern conflicts is increasing, and with that comes the need for effective counter-drone solutions. DroneShield is positioning itself right in the middle of that shift.

I see this as a structural trend rather than a short-term one. Defence spending is rising globally, and technologies that can detect, track, and neutralise drones are becoming more important. That creates a large and expanding addressable market.

Of course, this is not without risk. Smaller companies can be volatile, and contract timing can impact results.

But from a long-term perspective, I think DroneShield offers exposure to a theme that could play out over many years.

Netwealth Group Ltd (ASX: NWL)

Netwealth is a very different type of business. Where DroneShield is more thematic and emerging, Netwealth is a proven compounder benefiting from a structural shift in financial services.

The move toward independent financial advice and platform-based investing continues to gain momentum, and Netwealth has been one of the key beneficiaries.

What I like most here is the consistency. Funds under administration have grown steadily over time, supported by strong inflows and adviser adoption. That creates a recurring revenue base that can scale as the platform grows.

There will be competition, and valuations can fluctuate. But I think the long-term trend is clear, and Netwealth is well positioned within it.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa adds a different flavour again. This ASX 200 share is a jewellery retail business that has demonstrated an ability to expand globally and grow earnings through its store rollout strategy.

What stands out to me is the pace of expansion. The company continues to open new stores across multiple regions, and that growth is supported by strong margins and a relatively simple operating model.

Retail can be cyclical, and consumer spending is not always predictable. But Lovisa’s focus on affordable fashion and fast product turnover gives it a level of flexibility.

I think it is one of the better examples of an Australian retailer successfully scaling internationally.

Foolish takeaway

As April arrives, I am not looking for one type of opportunity. I am looking for a mix.

DroneShield offers exposure to a powerful defence and technology trend, Netwealth provides steady platform-driven growth, and Lovisa brings global retail expansion. They are very different businesses, but each has a clear pathway to long-term growth.

The post Why I’d buy DroneShield and these ASX 200 shares next month appeared first on The Motley Fool Australia.

More reading

• 2 strong Australian stocks to buy now with $8,000
• Where to invest $10,000 in ASX 200 shares this April
• Leading brokers name 3 ASX shares to buy today
• Why are DroneShield shares trading higher today?
• What is Bell Potter saying about DroneShield and EOS shares this week?

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