Electro Optic Systems Holdings Ltd (ASX: EOS) shares have been on fire this week.

Thanks to the announcement of another major contract win, this ASX defence and space stock has rocketed over 40%.

This means that its shares are now up over 400% since the start of the year.

But if you thought it was too late to invest, think again! That’s because Bell Potter believes there’s more upside to come for this high-flying stock.

What is the broker saying?

Bell Potter was pleased with the company’s announcement of an US$80 million contract from a South Korean customer for a High Energy Laser Weapon (HELW) and an agreement to establish a joint venture in the country. It said:

Establishment of a joint venture (JV) between EOS and the customer to develop and supply the Korean market with 100kW HELWs on terms to be agreed; and licensing of IP relating to 100kW HELWs for the Korean market to the JV. The contract is expected to be fulfilled after delivery at the end of CY27e and subsequent demonstrations. The contract was previously expected to be awarded in CY26e.

We view this award as further evidence of the significant revenue opportunity available to EOS from the directed energy counter-drone (C-UAS) vertical. Currently, EOS is the only supplier in the world to have been awarded a HELW export contract for a 100kW system. We believe that current competitive dynamics in the HELW industry are favourable for EOS, with US companies unable to export directed energy technology; the UK offering a lower power (30kW) weapon; and Israel’s “Iron Beam” system lacking clarity on export restrictions.

In response, the broker has boosted its earnings estimates meaningfully again. It adds:

We have upgraded EPS +15%/+42% in CY26/27e, reflecting: revenue upgrades due to the larger than expected HELW contract and increased confidence of further HELW contracts awarded; gross margin expansion on account of greater revenue skew to higher margin HELW contracts; and favourable working capital changes.

Should you buy Electro Optics Systems (EOS) shares?

According to the note, the broker has retained its buy rating on Electro Optics Systems (EOS) shares with an improved price target of $9.00 (from $8.10).

Based on its current share price of $7.19, this implies potential upside of 25% for investors over the next 12 months.

Bell Potter concludes:

We retain our Buy rating and raise our TP to $9.00. EOS is positioned as a market leader in C-UAS solutions and is leveraged to increasing budget allocations to C-UAS technologies. We see positive news flow over the next 6 months stemming from CUAS and RWS contract awards.

The post Why it isn’t too late to buy Electro Optic Systems (EOS) shares appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Why 4DMedical, EOS, Gorilla Gold, and Neuren shares are racing higher today
• Counter drone company surges past $1 billion valuation with new contract win
• After falling 50%, this under-the-radar growth stock looks like brilliant value to me
• Bell Potter names the best ASX defence stocks to buy

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 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.

Shares in Southern Cross Electrical Engineering Ltd (ASX: SXE) were trading higher on Tuesday after the company announced $90 million in new contracts across data centres and rail.

The company said in a statement to the ASX that it had been awarded a range of works on DigiCo Infrastructure REIT (ASX: DGT)’s SYD1 project located in Sydney’s inner-west, where the existing data centre is being expanded with additional levels and increased power capacity.

Package of work won

Southern Cross subsidiary Heyday has been awarded the design and construct scope “for the installation of low-voltage switchboards, busways, generators, and UPS systems, along with the supply and installation of cable containment, LV reticulation, lighting, and general power systems”.

Fellow subsidiary Force Fire has been awarded the fire services and design and construct works for the project, in addition to demolition works it had already completed.

In addition to this, Trivantage Manufacturing had received an order for the supply of electrical switchboards, and would work closely with Heyday on the design.

The company said further re the switchboards:

They are being manufactured locally at our Sydney facilities and are expected to reach completion in accordance with the approved project schedule.

In rail, Southern Cross said it had been awarded a package of work relating to Sydney Metro’s St Marys Station Project, with that work relating to the electrical and communications systems.

Experience a key differentiator

Southern Cross Managing Director Graeme Dunn said it was pleasing to win new contracts in both sectors, which the company had deep experience in.

He went on to say:

I am pleased to be announcing further awards in the data centre and rail transport sectors which have been strong and growing sources of activity for us. I note that in both this particular data centre facility and on the Sydney Metro infrastructure development generally, we have done significant volumes of work previously and so to secure these new works is a testament to the quality of our past delivery. I also observe that on both of these developments we are drawing on multiple disciplines from across the group, which not all of our competitors are able to match. This of course benefits us as we are able to get more out of each project, but I believe also benefits our clients as we are able to deepen our relationships with them and better co-ordinate delivery across disciplines to them.

Southern cross shares were 2.5% higher on Tuesday morning at $2.46. The company was valued at $638.3 million at the close of trade on Monday.

The post Data centre and rail contract wins have boosted this engineering firm’s shares appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Healthy dividend sends ASX 200 data centre investor’s shares higher
• DigiCo Infrastructure REIT declares 1H FY26 distribution: Key dates and outlook
• What’s going on with this ASX AI share on Monday?
• DigiCo Infrastructure REIT appoints new CEO and sets strategic growth path

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 recommended Southern Cross Electrical Engineering. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX All Ords gold stock Ausgold Ltd (ASX: AUC) is slipping today.

Ausgold shares closed up 4% yesterday, trading for $1.04. In morning trade on Tuesday, shares are changing hands for $1.02 apiece, down 1.9%.

For some context, the All Ordinaries Index (ASX: XAO) is up 0.3% at this same time.

Today’s underperformance is unusual for the miner in 2025.

Amid a surging gold price and Ausgold’s own successes on the ground this year, investors who bought the ASX All Ords gold stock on 2 January are now sitting on gains of 142.9%.

Here’s what the miner reported this morning.

ASX All Ords gold stock ramping to production

In an ASX release before market open, Ausgold announced that it had completed the updated Definitive Feasibility Study (DFS) for its 100%-owned Katanning Gold Project (KGP), located in Western Australia.

The ASX All Ords gold stock needed to update its June 2025 DFS following a key land acquisition deal adjacent to Katanning, which it reported in August.

The miner explained that its June 2025 KGP Ore Reserve was artificially constrained to remain within the eastern boundary due to land access restrictions. At the time, Ausgold didn’t expect to be able to mine the area outside of its existing land holdings in the near future. As such, this was excluded from the June DFS.

Now, following its expanded tenure position, the ASX All Ords gold stock said it has completed a further optimisation of the KGP mine plan. Ausgold expects to add incremental life-of-mine gold production from areas within the Central Zone of the deposit. And management said mining costs will come down after Ausgold relocates waste dumps to more strategic locations, reducing haulage distances.

Digging into the numbers, the life-of-mine forecast gold production increased by 82,000 ounces to 1.22 million ounces. Ausgold expects to be able to increase its average annual gold production to 143,000 ounces in the first four years.

And costs will come down as well, with the all-in sustaining cost (AISC) now forecast to be $2,157 per ounce over the first four years and $2,252 per ounce over the life-of-mine.

What did management say?

Commenting on the DFS results, which could support the ASX All Ords gold stock longer-term, Ausgold executive chairman John Dorward said, “We are delighted with the outcomes of the optimised DFS Update, which clearly demonstrate the robust financial returns that will be generated by the KGP.”

Dorward added:

In addition to the extensive drilling program currently underway, we are progressing pre-development activities at pace, including front-end engineering and design and tendering of key contracts including construction of the workforce accommodation facility, power supply and EPC/EPCM and debt financing, whilst in parallel progressing activities to finalise permitting for the project.

The post Up 143% in 2025, ASX All Ords gold stock announces 82,000-ounce gold boost appeared first on The Motley Fool Australia.

More reading

• Why Ausgold, DroneShield, EML, and TPG shares are falling today
• Why is this high-flying ASX All Ords gold stock crashing 10% today?

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 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.

The Australian tech sector has had a relatively tough time in 2025, with only a handful of tech stocks outperforming the market.

But Bell Potter doesn’t think this should put you off from investing in the sector in 2026. In fact, it has just picked out three of the best ASX tech stocks to buy and is predicting strong returns from them. Here’s what it is recommending:

Life360 Inc (ASX: 360)

Life360 has been on form in 2025, rising by over 50%. However, things were significantly better at the beginning of October, with the location technology company’s shares pulling back by 37% since then.

Bell Potter thinks this is an opportunity in 2026 and has put a buy rating and $52.50 price target on its shares. It said:

Life360 has had a large pullback in its share price like many other stocks in the technology sector (peak of ~$55 in early October down to ~$35 in mid November). Outside of the general correction in the sector there was one factor specific to the company which also drove down the share price – slowing monthly active user or MAU growth in 3Q2025. Q3 is traditionally the strongest quarter for MAU growth so the relatively slow growth was a big surprise and was also not well explained by the company.

Outside of this number, however, everything was as expected or better and importantly paying subscriber growth was still strong. Our view is the outlook remains very positive for the company and the one quarter of relatively soft MAU growth was an aberration. We therefore expect a return to reasonable or even strong MAU growth in 4Q2025, and this could also serve as a potential catalyst for the share price.

WiseTech Global Ltd (ASX: WTC)

Another ASX tech stock that has pulled back materially this year is logistics solutions technology company WiseTech.

Bell Potter remains positive and believes that new products, a new commercial model, and the acquisition of e2open will help drive growth. It has put a buy rating and $100.00 price target on its shares. It commented:

WiseTech has also had a large pullback in its share price but this has been more driven by company specific issues like slowing growth in the core business, management and board upheaval and insider trading allegations against CEO and founder Richard White. These issues, however, are starting to subside and focus is returning to the outlook for the core business which is improving with the launch of new products, a new commercial model and the integration of a large acquisition (e2open).

These initiatives are all expected to help drive a much stronger 2HFY26 result relative to 1HFY26 and then the first full year of benefits will be evident in FY27. All of these changes/initiatives are not without risk and there is still some risk of a soft downgrade to revenue guidance in FY26 at the half year result but the 12-month outlook is positive in our view.

CAR Group Limited (ASX: CAR)

A third ASX tech stock that could be a best buy in 2026 according to the broker is auto listings company CAR Group.

With its shares trading on a lower than normal price to earnings (P/E) ratio, the broker sees now as an opportune time to invest. It has a buy rating and $42.20 price target on its shares. It said:

Similarly to both 360 and WTC, CAR has seen a drawdown in recent months, though lacks a company specific driver which in our view provides an entry opportunity. CAR is diversified throughout verticals (automotive and non-automotive) and geographies (Australia, North America, South Korea, Brazil, and Chile), with revenues supported by a dealer subscription model which can provide for a level of safety against volatility in listings volumes.

CAR is trading around two-year lows at a P/E of ~28x, despite a defined product rollout map to drive value from its market-leading networks in its large, addressable markets, which includes C2C payments, pay-per lead model, regional expansion and scope to develop market-based legacy advertising practices, underpinning a steady growth profile in our forecast EPS through FY26e-FY28e.

The post Bell Potter names the best ASX tech stocks to buy in 2026 appeared first on The Motley Fool Australia.

More reading

• Why are ASX 200 tech stocks like Xero shares taking a beating on Monday?
• Brokers name 3 ASX shares to buy today
• 5 ASX 200 shares I’d buy with $10,000 this week
• Is WiseTech shaping up as a bargain after its steep decline?
• Top brokers name 3 ASX shares to buy today

Motley Fool contributor James Mickleboro has positions in Life360 and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360 and WiseTech Global. The Motley Fool Australia has positions in and has recommended Life360 and WiseTech Global. The Motley Fool Australia has recommended CAR Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Considering all of this, could Nvidia become the first $10 trillion company? Let’s find out. 

An amazing growth story

Before answering that question, let’s take a quick look at this amazing growth story. Nvidia, for a number of years, focused on selling GPUs to video gaming companies. But, when talk of AI started to circulate about a decade ago, Nvidia knew it could play a significant role and jumped on the opportunity. The company designed GPUs for this powerful new technology, building its reputation as an expert and leader in the field.

All of this fueled massive growth in revenue, with sales climbing in the double and triple digits as the AI boom advanced. Customers rushed to Nvidia for chips and related tools to power their large language models, and Nvidia, seeing the potential ahead, pledged to innovate on an annual basis to satisfy the need for speed and efficiency. This commitment to innovation is what has kept — and should continue to keep — Nvidia ahead of the rest.

Now, let’s take a look at our question: Could Nvidia become the first company to reach $10 trillion? To reach that level, Nvidia stock would have to climb 128% to about $411, which seems like a reasonable feat for this company over, say, a five-year period. (Nvidia soared 1,200% over the past five years.) But it’s important to consider whether Nvidia’s growth rate would support such a price.

Nvidia’s price in relation to sales

We can gather clues by looking at Nvidia’s price-to-sales ratio. Today, the company trades for 23x trailing 12-month sales, but over the past year, this ratio has most often been around 25 or even higher. Nvidia’s sales reached $130 billion in the latest fiscal year, and analysts project levels of $213 billion for the current fiscal year and $316 for the next fiscal year (fiscal 2027). That suggests year-over-year growth of 63% in this fiscal year and 48% in the next fiscal year.

Now let’s use the example of $400 billion in annual revenue by the end of the decade. This represents growth of only 27% from the fiscal 2027 projected figure — a much lower growth rate than Nvidia has delivered in recent years. Nvidia could reach a $10 trillion market value in this example, because at this revenue level, the company’s P/S ratio would be 25.

This means, mathematically, it’s possible for Nvidia’s market value to reach these levels. But does it have the business to fuel such revenue gains?

I’m optimistic, and here’s why: Nvidia is the GPU market leader and is innovating to ensure its position. Meanwhile, we’re now in a major stage of infrastructure ramp-up, meaning big cloud service providers are expanding data centers to accommodate soaring AI demand. And players like Meta Platforms, aiming to train models in-house and grow their own AI programs, also are turning directly to Nvidia for its products. In fact, Nvidia has predicted that AI infrastructure spending may reach as much as $4 trillion over the coming five years.

Nvidia, which already works closely with these deep-pocketed customers, may be one of the biggest winners of this movement. And all of this could shepherd this top AI company to yet another major milestone: $10 trillion in market value by 2030.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Could Nvidia become the first $10 trillion company? appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• 3 ASX ETFs that benefit from unavoidable megatrends
• Better Artificial Intelligence (AI) stock for 2026: Nvidia or AMD?
• 3 stocks that in 20 years have turned $5,000 into more than $1 million
• Will Nvidia crush the market again in 2026?
• The 3 smartest quantum computing stocks to buy with $1,000 in 2026

Adria Cimino 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, Meta Platforms, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Apple, Meta Platforms, 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 on the move on Tuesday morning.

At the time of writing, the counter drone technology company’s shares are up 20% to $2.76.

Why are DroneShield shares jumping?

Investors have been scrambling to buy the company’s shares this morning after it made a big announcement before the market open.

According to the release, DroneShield has received a contract valued at a total of $49.6 million from an in-region European reseller.

It notes that this European reseller is contractually required to distribute the products to a European military end-customer. However, it was not at liberty to disclose who that end-customer is.

Though, management confirmed that it does not consider the identity of the counterparty/customers to be information that a reasonable person would expect to have a material effect on the price or value of the DroneShield’s securities.

In addition, it stressed that the announcement contains all material information relevant to assessing the impact of the contract on the price or value of the DroneShield’s shares and is not misleading by omission.

What is the contract for?

The release notes that the $49.6 million contract is for handheld counter drone systems, associated accessories, and software updates.

The good news is that DroneShield has a large portion of this stock on-the-shelf. As a result, it expects to complete all deliveries in the first quarter of 2026.

Cash payments are also expected to be fully received during the same quarter and no additional material conditions need to be satisfied.

This isn’t the first order from this reseller. DroneShield revealed that it over the past three years, it has received 15 contracts from this reseller totalling over $86.5 million. And while it likely won’t be the last, there are no obligations for any additional contracts from this reseller or end-customer.

Should you invest?

The team at Bell Potter sees a lot of value in DroneShield shares at current levels.

While it hasn’t responded to this news yet, it last had a buy rating and $5.30 price target on its shares. This is more than double where they currently trade. The broker said:

We believe DRO has the market leading counter-drone offering and a strengthening competitive advantage owing to its years of experience and large R&D team, focused on detect and defeat capabilities. We expect 2026 will be an inflection point for the global counter-drone industry with countries poised to unleash a wave of spending on soft-kill detect and defeat solutions. Consequently, we believe DRO should see material contracts flowing from its $2,550m potential sales pipeline over the next 3-6 months as defence budgets roll over to FY26.

The post Why are DroneShield shares jumping 20% today? appeared first on The Motley Fool Australia.

More reading

• Up 10x since July, could this hot ASX stock be the next Droneshield?
• DroneShield bags $49.6m European military contract: What investors need to know
• 3 ASX mid-cap rockets that could become future blue chips
• Here are the top 10 ASX 200 shares today
• Will the Droneshield share price double in 2026?

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 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.

Rare earths remained firmly in the spotlight throughout 2025, as rising geopolitical tensions heightened concerns over global supply.

This group of 17 elements is critical to a wide range of modern-day industries, including clean energy, electric vehicles, consumer electronics, and robotics.

However, supply remains highly concentrated with China accounting for around 60% of global rare earths production and more than 90% of refining capacity.

This market dominance has prompted some Western nations like the US to diversify supply chains and reduce reliance on China.

As a result, several ASX mining stocks with rare earths projects outside of China have surged this year.

For instance, Lynas Rare Earths Ltd (ASX: LYC) has been a strong performer with its share price soaring by 93% since the start of January.

The company operates the Mt Weld mine in Western Australia which is widely regarded as one of the most significant rare earths deposits in the world.

However, Lynas is not the only ASX rare earths stock attracting attention.

According to Australian financial advisory firm Bell Potter, another player could be poised for serious upside.

Bell Potter’s view on rare earths

Bell Potter believes the tailwinds driving the rare earths boom in 2025 are likely to persist.

These include ongoing geopolitical tensions, US government investment in mining, and expanding separation and magnet manufacturing capacity.

That said, the broker cautioned that a wave of new supply could potentially enter the rare earths market in upcoming years.

As a result, Bell Potter’s preference is for projects in the bottom quartile of the cost curve and relatively low capital and execution risk.

And the broker identified Verdis Mining and Minerals Ltd (ASX: VMM) as one such opportunity.

Economically significant project

Verdis is developing its Colossus rare earths project in Brazil, located within the geologically fertile Poços de Caldas rare earths complex.

Management considers Colossus to be amongst the most economically robust rare earths projects globally.

A recent economic assessment outlined a 20 year initial mine life and a modest two-year payback period for a potential mine at the project.

However, a subsequent reserve estimate hinted that production could possibly extend for up to 40 years.

Bell Potter noted that Colossus is progressing through initial permitting, with a Preliminary Licence (LP) awaiting final approval.

It added that the project has indicative debt support for the project from within Brazil, France, and Canada.

The broker also appears drawn to the project’s potential for hosting dysprosium and terbium.

These two elements play a key role in high-performance magnets used in electric vehicles, wind turbines, and defence sector technology.

Bell Potter commented:

Once in production, we believe VMM will be one of the lowest operating cost rare earth projects globally, and a meaningful provider of heavy rare earth elements Dysprosium and Terbium (Dy + Tb).

Share price in focus for this ASX mining stock

Verdis shareholders have already enjoyed a standout year.

Overall, shares in this ASX mining stock have rocketed by 184% since the start of January.

This compares with a 5.4% rise for the S&P/ASX All Ordinaries Index (ASX: XAO) across the same period.

However, Bell Potter believes this powerful rally could have plenty of fuel left in the tank.

The broker has assigned a speculative buy rating and set a price target of $2.65 per share for this ASX mining stock.

This represents potential upside of 165% from Monday’s closing price of $1.00 per share.

The post Expert tips 165% upside for this ASX mining stock as rare earths tailwinds persist appeared first on The Motley Fool Australia.

More reading

• Leading broker thinks this ASX materials stock is set to double!

Motley Fool contributor Bart Bogacz has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. 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.

The Tasmea Ltd (ASX: TEA) share price has cooled sharply in recent weeks, falling close to 20% from its November peak.

That pullback comes after a blistering run earlier in 2025, when the ASX industrials stock surged more than 115% in just six months and firmly put itself on investors’ radars.

So has Tasmea flown too close to the sun, or is this the kind of pullback long-term investors tend to watch closely?

What does Tasmea actually do?

Tasmea operates a portfolio of specialist industrial service businesses across Australia and New Zealand. Its operations span asset maintenance, engineering services, infrastructure support, and industrial contracting — work that tends to be recurring, non-discretionary, and closely tied to essential infrastructure.

That positioning has become increasingly attractive as capital spending cycles lift across energy, utilities, transport, and industrial assets. Unlike more cyclical industrials, Tasmea’s exposure is spread across maintenance and operational services rather than one-off construction projects.

This has helped underpin steady revenue growth and improve earnings visibility, which has been a major driver behind the share price rally seen through the first half of 2025.

Why the Tasmea share price surged in 2025

Tasmea’s strong performance this year has been driven by a combination of operational execution and sector tailwinds.

The company has continued to expand margins, integrate acquisitions effectively, and benefit from ongoing demand for outsourced industrial services. At the same time, broader market interest has shifted toward profitable, cash-generative industrial growth stocks after several ASX stalwarts began to stumble.

As one recent analysis highlighted, investors have increasingly looked beyond traditional blue chips and into businesses offering steady growth without relying on speculative narratives.

Tasmea fitted that brief neatly.

Brokers still see upside

Despite the recent pullback, at least one broker remains constructive on the outlook.

A recent broker note suggested Tasmea still has meaningful upside potential from current levels, pointing to earnings momentum, disciplined capital allocation, and ongoing demand across its end markets.

Importantly, the broker’s thesis does not rely on short-term multiple expansion. Instead, it assumes continued growth in revenue and profits as infrastructure owners prioritise maintenance, reliability, and compliance over the coming years.

That distinction matters in a market where sentiment can swing quickly.

Short-term nerves versus long-term fundamentals

None of this guarantees a rising share price in the near term.

Equity markets remain on edge, valuations across many sectors are being reassessed, and even high-quality ASX growth stocks are not immune to bouts of volatility. After such a strong run earlier in the year, some degree of consolidation was always likely.

However, long-term investors tend to focus less on month-to-month share price fluctuations and more on whether a business can sustainably grow its earnings over many years.

If Tasmea continues to execute in 2026 as it has recently — growing revenue, maintaining margins, and deploying capital sensibly — history suggests that the share price should eventually reflect that progress, even if the path is uneven.

Foolish Takeaway 

Tasmea’s pullback looks less like a structural break and more like a pause after a rapid ascent.

For investors hunting ASX stocks for growth with exposure to real-world infrastructure and industrial services, Tasmea remains one to watch. The business fundamentals appear intact, sector tailwinds remain supportive, and broker sentiment suggests the long-term growth story is far from over.

Whether the current price proves attractive will ultimately depend on time horizon — and patience.

The post Is this ASX industrials stock a buy after a 20% pullback from all-time highs? appeared first on The Motley Fool Australia.

More reading

• Broker tips 20% upside for this ASX industrials stock

Motley Fool contributor Leigh Gant 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.