After a huge run over the past year, Electro Optic Systems Holdings Ltd (ASX: EOS) shares are starting to lose some heat.

At the time of writing, the EOS share price is down 2.42% to $9.67.

That takes its fall over the past month to almost 12%, leaving investors to wonder whether this is just a pause after a massive rally.

It is not as if the stock has gone cold completely. EOS shares are still up around 270% over the past year, although they are now only slightly higher in 2026 with a gain of about 2%.

With the company still winning defence contracts and brokers still seeing upside, this pullback is worth a closer look.

The big run is cooling off

The recent weakness looks more like the market taking a breather after the stock’s big rally.

After climbing so far, some investors may be happy to take a profit while they wait for the next update.

The company has been supported by a series of contract wins, higher defence spending, and growing demand for counter-drone and remote weapon systems (RWS).

There has also been plenty for the market to take in.

Earlier this month, EOS announced new sales orders worth about $38 million. The larger one was for a US$16 million Naval 400 RWS, which will be supplied to a new customer in the Middle East.

MARSS, its command-and-control business, also received an 8-million-pound order for a new counter-drone command and training centre.

Before that, EOS announced a much larger US$124 million deal for its Slinger counter-drone RWS.

That deal came from Generation 5 Holding in the UAE and includes systems, cannons, spares, training, and other supplies.

Delivery is expected across 2027 and 2028, subject to customer and export approvals.

Brokers are still upbeat

The recent pullback hasn’t stopped brokers from seeing more upside in EOS shares.

Bell Potter recently kept its buy rating on EOS and lifted its price target to $12.50. Based on the current share price of $9.67, that suggests potential upside of about 29%.

Ord Minnett is also backing the stock, recently lifting its target to $11.45. That points to a possible upside of about 18% from today’s level.

The upbeat broker view seems to come down to the order book, counter-drone demand, and the laser weapon joint venture in the UAE.

That venture is focused on developing and manufacturing 100-kilowatt and 200 to 300-kilowatt laser weapon products.

Can EOS shares bounce back?

After a 12% pullback, I would not be writing this one off.

EOS shares have declined recently, but the stock hasn’t lost the key things that drove the rally in the first place.

The company is still winning work, brokers are still positive, and the all-time high of $12.58 sits just above Bell Potter’s $12.50 target.

If EOS lands another decent contract, I think the share price can have another crack at that high.

The post Down 12% in a month: Is the EOS share price ready to explode? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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 Electro Optic Systems. 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.

ASX shares have had a choppy start to the year. Inflation concerns, geopolitical uncertainty, and interest rate changes have all put pressure on investor sentiment.

But when markets are volatile, it’s a good time to look at the investment opportunity hiding among oversold shares.

Here are three that spring to mind.

Pantoro Gold Ltd (ASX: PNR)

Pantoro is a gold producer and exploration company based in Western Australia. The company’s flagship operation is the 100%-owned Norseman Gold Project in the state’s Eastern Goldfields region, and the ASX gold producer is also exploring a portfolio of regional targets in the Kimberly region. The gold miner’s shares crashed by around 48% in March after it released its drilling results from its Norseman project and cut its production guidance following weather disruptions. The update overshadowed what were otherwise strong financial results. But subsequent updates have suggested the disruption was temporary and brokers are very bullish that Pantoro’s share price can rebound quickly. Market Index data shows that the majority of brokers have a buy rating on the shares. The $4.99 target price implies an impressive potential 115% upside at the time of writing. 

Qoria Ltd (ASX: QOR)

Qoria is a small-cap cybersecurity company that offers online safety technology for children, including school and parental controls. The company aims to become the global leader in children’s digital safety and well-being within three years. The ASX company has reached 30 million students in 32,000 schools and earns a significant annual recurring revenue from ongoing school contracts. In its half-year FY26 result, Qoria announced a 25% increase in revenue and a 68% hike in EBITDA. And brokers think the strong rate of expansion can continue. Market Index shows brokers have a consensus strong buy rating on the ASX shares and an average 58 cents target price. That implies a huge potential 138% upside at the time of writing.

Amplitude Energy Ltd (ASX: AEL)

Amplitude is an Australian energy company that supplies gas and oil to the domestic market. The company has a number of major gas supply contracts with customers, including AGL Energy Ltd (ASX: AGL) and Origin Energy Ltd (ASX: ORG). Its gas segment accounts for the vast majority of the company’s revenue. Its share price crashed in March after the company announced that its Isabella gas discovery was not commercially viable, despite earlier encouraging drilling results. But Ampitude continues to produce and sell gas from its other existing projects, and Isabella wasn’t the only growth project in the works. Brokers see the sell-off as excessive. The majority hold a buy rating, and they tip a 99% upside to an average $2.51 target price over the next 12 months. 

Xero Ltd (ASX: XRO) 

The ASX 200 tech shares have been beaten down over the past year after concerns about the company’s valuation and earnings outlook. Xero was caught up in a sector-wide sell-off late last year and in early 2026 as investors rotated away from tech stocks amid concerns about AI competition. But now I think the sell-off has been way overdone. Xero benefits from an incredibly sticky subscription base and high customer retention rates. This means its revenue is relatively predictable. As a relatively small market player, it also has a lot of growth potential. Most analysts have a strong buy rating on the shares. They tip an upside of around 90% to an average target price of $141.56. 

The post Are these oversold ASX shares too good to pass up? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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 Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is back in negative territory on Tuesday, despite a stronger lead from Wall Street overnight.

At the time of writing, the ASX 200 is down 0.37% to 8,798 points.

That puts the benchmark index close to its intraday low of 8,790.3 points and below yesterday’s close of 8,831 points.

It’s not a heavy fall, but it is another reminder that the local market is still finding it hard to build momentum.

Here’s what is weighing on the ASX 200 today.

Wall Street rally fails to lift our local share market

The fall comes after a positive night in the United States.

The Dow Jones Industrial Average (DJX: .DJI) lifted 0.29% to a record close of 53,055.91 points, while the S&P 500 Index (SP: .INX) rose 0.72% and the Nasdaq Composite Index (NASDAQ: .IXIC) climbed 1.12%.

Normally, that sort of lead would give local shares a better platform.

However, the ASX 200 has not been able to make much of it. Instead, selling across miners, gold shares, and parts of the energy sector is offsetting gains from the banks and tech stocks.

The broader market is also mostly in the red.

At the latest check, 121 of the top 200 shares were falling, compared with 75 rising and 4 trading flat.

Miners drag on the ASX 200

Resources stocks are doing much of the damage today, with the S&P/ASX 200 Resources Index (ASX: XJR) sliding 2.3% to 7,397 points.

BHP Group Ltd (ASX: BHP) shares are down 1.08% to $59.375, while Rio Tinto Ltd (ASX: RIO) shares are shedding 1.76% to $168.15.

Gold stocks are also under pressure with the gold price slipped to US$4,127 per ounce, down 0.91%.

Northern Star Resources Ltd (ASX: NST) shares are tumbling 3.17% to $21.08, while Evolution Mining Ltd (ASX: EVN) shares are falling 3.57% to $12.16.

Banks and tech stocks provide some support

The major banks are helping soften the fall.

Commonwealth Bank of Australia (ASX: CBA) shares are up 1.23% to $166.69, while Westpac Banking Corp (ASX: WBC) shares have added 0.85% to $35.59.

National Australia Bank Ltd (ASX: NAB) shares are 0.96% higher at $39.02, while ANZ Group Holdings Ltd (ASX: ANZ) shares have lifted 0.49% to $35.17.

Macquarie Group Ltd (ASX: MQG) shares are also stronger, rising 0.92% to $253.03.

Tech stocks are helping too, with WiseTech Global Ltd (ASX: WTC) shares jumping 8.4% to $38.34 after the company announced Raelene Murphy had been appointed independent chair.

Xero Ltd (ASX: XRO) shares are 1.5% higher to $74.66.

The post ASX 200 slips again: Why the market can’t follow Wall Street higher appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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 Macquarie Group, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended BHP Group and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.