Two popular ASX growth shares are being heavily sold off on Wednesday after releasing their latest results.

DroneShield Ltd (ASX: DRO) is down around 10% to $1.75, while WiseTech Global Ltd (ASX: WTC) has fallen around 6% to $42.88.

For me, both declines are creating an opportunity to look beyond today’s market reaction and focus on what these businesses could become.

DroneShield shares

DroneShield remains a higher-risk investment, but I think the growth opportunity is becoming harder to ignore.

The counter-drone specialist generated record first-half revenue of $125.8 million, representing growth of 74% over the prior corresponding period. More importantly for me, recurring revenue increased 229% to $11.5 million.

Recurring revenue is still a relatively small part of the business, so I would not make too much of it yet. But it shows DroneShield is beginning to build revenue that can continue after the initial hardware sale.

I also like what the company is doing to prepare for much greater demand.

DroneShield completed its new Sydney production facility during the half and established operations in Europe, where more than half of first-half revenue was generated. It finished June with $180 million of cash and term deposits, giving it significant resources to keep investing in production, software, and new products.

The next generation of AI-enabled hardware and software is very interesting to me. Counter-drone technology needs to keep evolving as the threats themselves change, and DroneShield is investing heavily to stay near the front of that development.

At $1.75, I think the sell-off offers an attractive entry point for investors comfortable with considerable risk.

WiseTech shares

WiseTech is a much more established business, but I think today’s result shows there is still plenty for long-term investors to look forward to.

CargoWise sits at the centre of the company’s opportunity. It provides software that helps global logistics companies manage the movement of goods across borders, including freight forwarding, customs, warehousing, and other complex processes.

One development that caught my attention is that more than 95% of CargoWise customers have now moved onto WiseTech’s new Value Packs commercial model. This is designed to move the company further towards charging for the value and transactions flowing through CargoWise rather than traditional seat-based pricing.

I think that could become increasingly valuable as WiseTech adds more automation and AI to the platform.

The e2open acquisition also gives the company a much larger presence across global trade and supply chains. WiseTech has already achieved substantial cost savings from integrating the business, while free cash flow increased 43% to US$410.7 million in FY26.

The outlook gives me another reason to remain positive.

Management expects underlying EBITDA to grow by 12% to 21% in FY27, with the underlying EBITDA margin rising to between 49% and 51%.

That suggests WiseTech could continue getting more profitable as it integrates e2open, rolls out new products, and uses AI to improve both its software and internal operations.

At around $42.88, I would be happy to use today’s weakness to build a long-term position.

Foolish takeaway

In both cases, I can see businesses investing heavily today to pursue opportunities that could be substantially larger several years from now.

DroneShield carries considerably more risk and would warrant a smaller position in my portfolio. WiseTech has a more established business and stronger cash generation.

But after Wednesday’s falls, I think both shares are worth buying with a long-term view.

The post Why I’d buy the dip on DroneShield and WiseTech shares appeared first on The Motley Fool Australia.

More reading

• Are DroneShield shares a buy, sell or hold following their half-year FY26 results today?
• Why Woolworths, Domino’s and DroneShield shares are turning heads on Wednesday
• Why are WiseTech shares crashing 8.5% today?
• DroneShield share price in focus as record revenue meets interim loss
• WiseTech Global share price: FY26 earnings soar 79% on e2open acquisition

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

Shares in EBR Systems Inc (ASX: EBR) are languishing near their 12-month lows despite the company making good progress on its commercialisation plans.

The analyst team at Morgans believe the shares are deeply undervalued at this point, and has a very bullish share price target on the company which I’ll get to shortly.

First let’s have a look at a recent announcement on the company’s business.

Solid progress on take-up of technology

EBR has developed a system called WiSE which it says is designed to overcome the limitations of conventional cardiac resynchronisation therapy and, “is the only leadless left ventricular endocardial pacing (LVEP) device”.

The company recently released a quarterly report and said that it had surpassed its hundredth commercial WiSE implant, “with multiple sites performing their first WiSE implants and numerous sites performing their 2nd, 3rd, 4th, and greater cases”.

EBR Chief Executive Officer John McCutcheon said:

We are extremely pleased with this quarter on multiple fronts. Commercially, EBR surpassed its 100th commercial WiSE implant, with multiple sites performing their first WiSE implants and numerous more experienced sites continuing to treat patients with WiSE. We secured master purchasing agreements with HCA Healthcare, Advocate Health, and CHRISTUS Health, validating the clinical and economic benefit of WiSE in major U.S. healthcare networks. In support of our future commercial efforts, the U.S. Centers for Medicare & Medicaid Services (CMS) further advanced WiSE through the Transitional Coverage for Emerging Technology (TCET) program by formally initiating the National Coverage Determination process for WiSE.

The company also fully transitioned to its new manufacturing facility in California, Mr McCutcheon said.

During the quarter, EBR had operating cash outflows of $25 million, but also completed a $150 million capital raise.

Shares in this ASX biotech looking very cheap

Morgans said in its note to clients issued this week that they believed the commercial roll out, “has progressed further than the headline implant numbers suggest, but execution capacity has temporarily become a key variable”.

Morgans added:

Management is now deliberately de-emphasising new site contracting and physician training to focus on repeat utilisation within existing accounts. This should reduce the administrative burden on the field organisation and allow trained representatives to spend more time supporting procedures. Thus, we view implant productivity per activated account rather than the number of contracted hospitals as the key near-term variable. With 17 sites already having completed ≥3 cases, we see an opportunity for utilisation to compound as physicians gain experience and WiSE becomes embedded in clinical workflows.

Morgans said the company had moved beyond the question of whether hospitals would buy WiSE, to proving whether they could generate repeat sales.

They added, “we view the existing footprint as adequate to provide substantial gains not reflected in the current share price”.

Morgans has a share price target of $1.95 on EBR shares compared to 30.5 cents currently.

The company is valued at $214.7 million.

The post Could this ASX biotech really jump more than 500%? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England 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 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.

Telstra Group Ltd (ASX: TLS) is one of those businesses I think can suit investors looking for steady long-term returns rather than excitement.

With the shares trading close to their 52-week low, I think the current price deserves a closer look.

If I had $5,000 to invest today, I would be comfortable putting it into Telstra shares.

The income case is still strong

Telstra shares are trading around $4.60.

According to CommSec, analysts expect fully franked dividends per share of 22 cents in FY27 and 22.5 cents in FY28.

That puts the forward dividend yield at roughly 4.8% in FY27, before taking franking credits into account.

For an investor looking for passive income, I think that is attractive.

More importantly, the dividend is expected to keep edging higher rather than simply remaining flat.

Telstra has made a sustainable and growing dividend an important part of its strategy, and I think its recurring cash flows give it a good base from which to support those payments.

Mobile and internet services are regular household expenses, so Telstra continues receiving revenue from millions of customers every month.

That makes the income case easier for me to understand and gives shareholders a reason to hold the stock through quieter periods.

The business has defensive qualities

I also like Telstra because demand for its core services does not disappear when economic conditions weaken.

People still need mobile phones, internet connections, and access to digital services.

Businesses also rely heavily on telecommunications infrastructure to operate.

Telstra still faces economic pressure, competition, and changing customer behaviour, although I think demand for its services is more resilient than for many discretionary products.

For someone investing $5,000 and looking to hold for years, that stability has real value.

I would be much more comfortable owning a business whose products remain part of everyday life than relying on a company that needs consumers to keep spending freely.

There is still room for modest growth

Telstra does not need strong earnings growth to produce a respectable long-term result.

CommSec forecasts earnings per share of 20.8 cents in FY27 and 21.6 cents in FY28.

That is not explosive growth, but it does point in the right direction.

I think the more interesting part is how Telstra can keep improving the business around its existing customer base.

Its mobile network remains central to the company, while investments in fibre, satellite connectivity, enterprise services, and other infrastructure can create additional opportunities over time.

If Telstra can grow earnings gradually while continuing to increase its dividend, I think shareholders could receive a combination of income and moderate capital growth.

For me, that is enough to make the shares interesting at the current price.

Foolish takeaway

Yes, I would invest $5,000 into Telstra shares at around $4.60.

I like the combination of fully franked income, resilient demand, and the potential for steady earnings growth over time.

For investors seeking income and a relatively defensive long-term holding, I think the current share price looks attractive.

The post Would I buy Telstra shares with $5,000 as they near a 52-week low? appeared first on The Motley Fool Australia.

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• Looking to bank the boosted Telstra dividend? You better hurry!

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 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.