The ASX is home to some very impressive Australian stocks. Some are the best in the country at what they do, or even the best in the world.

I’m going to highlight two businesses that I believe are undervalued and have excellent long-term growth potential, in my view.

While they may not be the cheapest Australian stocks in price/earnings (P/E) ratio terms, I think future profit growth will help them deliver market-beating total shareholder returns (TSR).

Breville Group Ltd (ASX: BRG)

Breville is one of the world’s leading coffee machine businesses. It has a number of brands including Breville, Sage, Lelit, Baratza and a coffee beans business called Beanz. Coffee seems like of the things that Australia is a world leader at.

The global adoption of coffee continues to be a strong tailwind for the company. FY26 revenue grew by 6.7% (with global segment growth of 9.7% in constant currency).

Breville said that its young markets of China, South Korea, Mexico and the Middle East delivered collective growth of more than 70%.

Tariffs have been a significant talking point for the last year and a half for the Australian stock (and other affected businesses). Breville’s manufacturing diversification has been substantially complete, with 85% of 120-volt product in gross profit dollar terms is now sourced outside of China.

The company also reported that its FY26 second half gross profit margin was 36.8%, above FY25’s 36.6%, primarily driven by the US sourcing mix.

While profitability was impacted during FY26, it still managed to deliver growth, even if it was a small increase at 1.7%. It was enough to fund a 2.7% increase in the dividend per share to 38 cents.

The projection on Commsec suggests the company’s earnings per share (EPS) could climb to $1.08 by FY27, putting the Australian stock at 28x FY27’s estimated earnings.

Estimates also suggest that EPS could grow by 28% between FY27 and FY29. The company is on track for a promising future.

Wesfarmers Ltd (ASX: WES)

The other Australian stock I want to highlight is Wesfarmers, the owner of Bunnings, Kmart, Officeworks, Priceline and other businesses. I’d describe Bunnings as one of the most ‘Australian’ businesses you could want to own.

Wesfarmers has proven to be very effective at delivering earnings growth over the years thanks to the quality of Bunnings and Kmart. They both have incredibly high returns on capital (ROC) for physical retailers and have managed to find a number of appealing places to invest to grow their earnings.

For example, Bunnings has invested in product ranges such as pet care and auto care, allowing it to compete with leaders in those respective segments.

As value leaders, Kmart and Bunnings are well-placed to serve customers during this period of a higher cost of living, which I believe will lead to a rising market share.

Wesfarmers’ return on equity (ROE) above 30% shows how profitably it puts new money to work. Over the long term, I think Wesfarmers’ earnings per share (EPS) can grow, particularly as it expands in areas like lithium and healthcare, both of which are growth areas.

According to the projection on Commsec, the Australian stock is valued at 27x FY27’s estimated earnings.

The post 2 strong Australian stocks to buy now with $9,000 appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Breville Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Technology remains one of the areas of the market where I see plenty of long-term growth ahead.

That is why the Vanguard Global Technology Index ETF (ASX: VTEK) has caught my attention.

If I had $5,000 to invest in a Vanguard ETF today, this is one I would be happy to buy and hold for the long term.

A way to invest in AI

Artificial intelligence (AI) would be one of my main reasons for owning the VTEK ETF.

The current AI boom requires enormous investment in computing power, semiconductors, cloud infrastructure, and software. This Vanguard ETF gives investors exposure to businesses operating across several parts of that chain.

NVIDIA, for example, has become one of the most important suppliers of the chips used to train and run AI models.

But the opportunity extends beyond chip designers. Taiwan Semiconductor Manufacturing manufactures many of the advanced semiconductors required across AI and other high-performance computing applications.

For me, that is one of the strengths of the VTEK ETF. Instead of trying to identify the single company that will benefit most from AI, investors can gain exposure to several businesses helping build the infrastructure behind it.

More than one technology trend

AI may be generating most of the headlines, but I would not invest $5,000 in this ETF based on that theme alone.

Technology spending continues to spread through almost every part of the economy.

Businesses are shifting more operations to the cloud, adopting new software tools, automating processes, and using data in increasingly sophisticated ways.

Microsoft is a good example of how several of these trends can come together. Its position in cloud computing and business software means it can benefit as companies invest more heavily in digital infrastructure while also introducing AI capabilities across existing products.

The fund also provides exposure to consumer technology through companies such as Apple.

That broader mix is important to me because it means VTEK is not dependent on one product cycle or one area of technology spending.

Why I like this Vanguard ETF’s structure

Another thing I like is simplicity.

Building a portfolio of individual global technology shares would require deciding how much to allocate to semiconductors, software, cloud computing, hardware, and other parts of the sector.

The Vanguard Global Technology Index ETF does that through a single ASX investment while providing exposure to a large collection of global technology companies.

That makes it an easy way for me to add a dedicated technology allocation alongside broader Australian or international investments.

There is a trade-off, though. This is still a sector-focused ETF, so I would expect it to be more volatile than a broad global shares fund. Its largest holdings also have a meaningful influence on performance.

For that reason, I would see this Vanguard ETF as one part of a diversified portfolio rather than something I would build an entire portfolio around.

Foolish takeaway

If I had $5,000 available for a long-term investment, this Vanguard ETF would be high on my list.

I like that it provides exposure to the infrastructure supporting AI, while also capturing growth across cloud computing, software, semiconductors, and consumer technology.

Technology will almost certainly look different a decade from now. Rather than trying to predict which individual company will dominate, I would be comfortable owning a fund positioned across several of the areas driving that change.

The post Why I’d invest $5,000 in this Vanguard ETF appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino 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 Apple, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool Australia has recommended Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

DroneShield Ltd (ASX: DRO) shares are sliding today.

Shares in the S&P/ASX 200 Index (ASX: XJO) AI-powered drone defence stock closed on Friday trading for $1.61. In morning trade on Monday, shares are swapping hands for $1.58 apiece, down 2.2%.

For some context, the ASX 200 is up 0.2% at this same time.

That’s today’s price action for you.

Now here’s the latest top leadership news.

DroneShield shares get new non-executive director

In a market announcement this morning, deemed non-price sensitive to DroneShield shares, the company reported the appointment of Lynne Saint as a non-executive director. Saint will step into the role on 24 November.

Saint currently serves on the board of Nufarm Ltd (ASX: NUF) and Ventia Services Group Ltd (ASX: VNT), where she chairs the Audit, Risk and Compliance Committee and is a member of the Nominations Committee, People and Remuneration Committee, and Safety and Sustainability Committee.

DroneShield chairman Hamish McLennan noted that the appointment is further evidence of the board’s renewal process.

McLennan said:

I welcome Lynne’s appointment to the DroneShield Board where her deep experience across audit, financial leadership, enterprise risk, supply chain risk and project management will be valuable as part of the strategic oversight and governance as the company continues to scale and expands its global footprint.

Saint added:

DroneShield is an impressive Australian technology company operating in a strategically important and rapidly evolving global industry.

I am delighted to be joining the Board at this stage of the company’s development, and I look forward to contributing my skills and experience as it continues to grow.

What’s the latest from the ASX 200 drone defence stock?

With today’s intraday moves factored in, DroneShield shares are down 59.6% since this time last year.

The ASX 200 drone defence stock released its half year results (H1 2026), covering the six months to 30 June, on 26 August.

Highlights included all-time high first half profits of $125.8 million, up 74% from H1 2025.

But things weren’t so rosy on the earnings front.

DroneShield reported an underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) loss of $12.4 million for the half year, down from a positive EBITDA of $8 million in the prior corresponding half.

The company said the loss was driven by “a period of planned investment in production capacity, product development, organisational systems and management capability to support larger global operations”.

On the bottom line, DroneShield’s statutory net loss after tax of $32.2 million was down from the $2.1 million profit reported in H1 2025.

DroneShield shares closed down 11.0% on the day of the results release.

The post Buying DroneShield shares? Meet your new board director appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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 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.