Why I think DroneShield and these ASX growth shares could beat the market over 10 years

Beating the market over 10 years is not easy.

A company needs more than a good story. It needs a large opportunity, strong execution, and enough room to keep growing after the first wave of investor excitement has passed.

I think the five ASX growth shares in this article have that potential.

They are not low-risk picks. In fact, several could be quite volatile. But for investors willing to think in decades rather than quarters, I think each one has a chance to deliver strong long-term returns.

NextDC Ltd (ASX: NXT)

NextDC gives investors exposure to one of the biggest physical requirements of the digital economy: data centre capacity.

Cloud computing, artificial intelligence (AI), cybersecurity, streaming, enterprise software, and online platforms all need secure and reliable infrastructure. That demand should keep increasing as businesses and consumers use more data every year.

NextDC is capital-intensive, so investors need to be patient while it builds new capacity. But if demand keeps growing, I think today’s investment could support much larger earnings over time.

Megaport Ltd (ASX: MP1)

Megaport is another way to invest in the cloud, but from a very different angle.

Its platform allows businesses to connect quickly to cloud providers, data centres, and networks without relying on slow traditional infrastructure.

I think this flexibility could become more valuable as companies use multiple clouds, move workloads around, and require faster digital connections.

Megaport has already done some of the hard work by building a global network. The next step is turning that reach into higher usage, stronger margins, and more consistent profitability.

Telix Pharmaceuticals Ltd (ASX: TLX)

Telix is an ASX healthcare growth share with a very different risk-reward profile.

The company is focused on radiopharmaceuticals, an area that combines imaging, diagnosis, and targeted cancer treatment.

I like the long-term opportunity because cancer care is moving toward more precise tools. If doctors can see disease more clearly and target treatment more accurately, patient outcomes could improve.

Telix still needs to keep executing clinically, commercially, and on the regulatory front. But if its pipeline delivers, I think the business could be significantly larger in 10 years.

DroneShield Ltd (ASX: DRO)

DroneShield is exposed to a defence and security problem that is becoming harder to ignore.

Drones are changing modern conflict, border protection, critical infrastructure security, and public safety planning. Cheap unmanned systems can create expensive problems.

DroneShield develops technology to detect, track, and respond to drone threats.

This is a higher-risk share, and contract timing can create volatility. But if counter-drone systems become a standard part of defence and security budgets, I think DroneShield could have a long runway.

Catapult Sports Ltd (ASX: CAT)

Catapult Sports brings a focused global sports technology angle.

Its products help elite teams track athlete performance, workload, tactics, and injury risk. Professional sport is becoming more data-driven, and clubs are always looking for small advantages.

What I like is the daily-use nature of the technology. If a club relies on Catapult inside training, coaching, and analysis workflows, the relationship can become valuable over time.

Foolish Takeaway

I think these five ASX growth shares offer exposure to some powerful long-term themes: data centres, cloud connectivity, precision medicine, counter-drone defence, and sports performance analytics.

There will be setbacks along the way. Some may take longer than investors expect to deliver on their potential.

But if even a few execute well over the next decade, I think this group could have a real chance of beating the market.

The post Why I think DroneShield and these ASX growth shares could beat the market over 10 years appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Buy, hold, sell: Catapult Sports, Worley, CBA shares
• Bell Potter names more of the best ASX shares to buy in May
• 3 excellent ASX ETFs to buy and hold for 10 years
• 3 ASX tech shares I’d buy with $20,000

Motley Fool contributor Grace Alvino has positions in DroneShield. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Catapult Sports, DroneShield, Megaport, and Telix Pharmaceuticals. The Motley Fool Australia has positions in and has recommended Catapult Sports. The Motley Fool Australia has recommended Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.