DroneShield Ltd (ASX: DRO) shares have given investors a wild ride over the past year.

After reaching $6.71 in October, the counter-drone technology share is now trading around $2.17.

I think that reset has created a more appealing opportunity. Here are three reasons I would buy.

The valuation has become easier to justify

DroneShield remains a growth share, so investors should expect to pay more than they would for a mature industrial or defensive business.

According to CommSec consensus estimates, the company is expected to generate earnings per share of 2.6 cents in FY26, 4.3 cents in FY27, and 7.4 cents in FY28.

That puts the shares on price-to-earnings ratios of approximately 83 times FY26 earnings, 50 times FY27 earnings, and 29 times FY28 earnings.

The early multiples are high, but they fall quickly if DroneShield delivers the expected earnings growth. An FY28 multiple of around 29 times does not look excessive to me for a company whose earnings could almost triple between FY26 and FY28.

The share price could still fall if contract wins or earnings arrive more slowly than expected. Even so, investors are being asked to pay far less for the long-term opportunity than they were near the 52-week high.

Counter-drone demand could keep growing

DroneShield develops technology that helps military, government, law enforcement, and critical infrastructure customers detect, track, and respond to unwanted drones.

I think the need for those systems is becoming easier to understand.

Drones are now cheaper, more capable, and more widely available. They can be used for surveillance, smuggling, disruption, and attacks, creating security challenges across battlefields, airports, prisons, energy facilities, borders, and major public events.

DroneShield has spent years focusing on this market and offers portable, vehicle-mounted, and fixed-site systems. That specialist position could help it capture a growing share of customer spending as counter-drone protection becomes a more established part of defence and security budgets.

The company still competes with much larger defence groups, while government procurement can move slowly and produce uneven revenue. I would accept those uncertainties because I think the market itself has substantial room to expand.

Software could strengthen the business

Hardware currently generates most of DroneShield’s revenue, and I expect equipment sales to remain central to its growth.

However, the company also has a major opportunity to earn more from software.

Counter-drone equipment needs to keep recognising new drone models, frequencies, and tactics. Customers may therefore require software updates, threat libraries, support, and ongoing improvements after the original system has been delivered.

That can extend the relationship beyond a single hardware purchase.

As the installed base grows, DroneShield could have more opportunities to sell software and services to existing customers. A larger recurring revenue contribution could make earnings more dependable and increase the value of each customer relationship.

I think this part of the story deserves more attention because it gives the company another way to grow alongside rising hardware demand.

Foolish takeaway

DroneShield still carries more uncertainty than an established ASX blue chip share, and I would keep the position measured.

The company needs to convert market demand into contracts, deliver equipment on time, expand its operations carefully, and meet ambitious earnings expectations.

At around $2.17, I think the potential reward has become more attractive. The counter-drone market is expanding, DroneShield has built a strong specialist position, and growing software revenue could improve the business over time.

Those three factors make DroneShield shares a buy for me today.

The post 3 reasons to buy DroneShield shares now appeared first on The Motley Fool Australia.

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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 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.

Investors looking for ASX blue-chip shares are probably aiming for businesses that can provide stability, reliable earnings and a good dividend yield.

Share prices can go down and payouts are not guaranteed, but I believe some businesses are capable of being more resilient and consistent.

I think the two names below are leaders in their industry at what they do, offering pleasing passive income.

Scentre Group (ASX: SCG)

This business is the owner of large shopping centres – it owns 42 Westfield locations across Australia and New Zealand, which includes more than 12,000 outlets.

One of the main reasons why I think it’s such a stable investment is that rental income is contracted and reliable – it had a portfolio occupancy of 99.8% at 31 March 2026, showing it’s maximising its rental potential.

It has evolved from just a retail centre to being a core destination for other experiences uses such as entertainment, dining and so on. I don’t think it’s as vulnerable to e-commerce adoption as other retail real estate investment trusts (REITs).

The business continues to report growth across a number of rental metrics.

In the three months to 31 March 2026, total business partner (tenant) sales across the portfolio were $7 billion (up 5%), with specialty sales growth of 5.3%.

It also noted that average specialty rent escalations were 5.3% in the three months to 31 March 2026. This is good organic rental growth.

The ASX blue-chip share completed 636 leasing deals, achieving average specialty releasing spreads of 3.3%. In other words, the new rental contracts are (on average) 3.3% higher than the old ones. That’s also pleasing organic growth for the business.

Another way that Scentre can increase its rental potential is by investing in (re)developments at its locations. It’s currently progressing a $240 million redevelopment at Westfield Bondi as a “world-leading lifestyle, entertainment and dining destination”.

According to the forecast on Commsec, the business is projected to grow its annual payout to 19.1 cents per security in FY27. That translates into a forward distribution yield of 4.9%.

Telstra Group Ltd (ASX: TLS)

Another ASX blue-chip share I want to highlight is Telstra, the country’s largest telco business.

Its scale means it’s able to generate high profit margins and invest the most in its network, compared to other industries. Hopefully it continues investing in its resilience and reliability.

The company’s market position and network coverage mean it’s able to attract a lot of customers. Australia’s ongoing digitalisation is a tailwind for demand for Telstra’s services, with an increasing number of devices needing a connection.

Telstra’s revenue and underlying earnings have been steadily growing in the last few years, giving the company the financial room to pay a rising dividend. In its latest result, it grew its interim dividend per share by 10.5% to 10.5 cents.

The projection on Commsec suggests the ASX blue-chip share could pay an annual dividend per share of 21.5 cents in FY27. That could translate into a grossed-up dividend yield of 6.1%, including franking credits.

The post 2 ASX blue-chip shares offering big dividend yields appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

With lots of ASX shares to choose from on the Australian market, it can be difficult to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you. 

Three top ASX shares that leading brokers have named as buys this week are outlined below. Let’s see why they are bullish on them.

ANZ Group Holdings Ltd (ASX: ANZ)

According to a note out of Citi, its analysts have retained their buy rating and $39.25 price target on this banking giant’s shares. The broker has been busy looking at the impact that artificial intelligence (AI) could have on the banking sector. The good news is that Citi believes ANZ could benefit from agentic AI. In fact, it estimates that the big four banks could see their profits increase by up to 5%. In light of this, the broker remains positive on ANZ and continues to see value in its shares at current levels. The ANZ share price last traded at $35.70.

Hub24 Ltd (ASX: HUB)

A note out of Bell Potter reveals that its analysts have retained their buy rating and $110.00 price target on this investment platform provider’s shares. Bell Potter was pleased with Hub24’s quarterly update, noting that it delivered a good result. It highlights that total net inflows were comparable to the prior corresponding period and no one-off large outflows were revealed. In addition, Bell Potter believes that the outlook commentary reinforces the structural growth story and the result leaves FY 2027 targets intact. The Hub24 share price was fetching $81.35 at yesterday’s close.

Qantas Airways Ltd (ASX: QAN)

Analysts at Morgan Stanley have retained their overweight rating on this airline operator’s shares with an improved price target of $12.50. According to the note, Morgan Stanley believes that Qantas’ Project Sunrise could be the catalyst for a structural re-rating of its shares. It highlights that the project, its fleet renewal, and broader network initiatives should improve earnings resilience, support stronger international margins, and narrow Qantas’ valuation discount to global peers. As a result, the broker thinks that now could be a good time to snap up shares. The Qantas share price last traded at $10.14.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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• HUB24 earnings: Record $18.9bn net inflows lift FUA

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro 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 Hub24. 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.