On the hunt for an ASX stock that looks well-placed for a bull run in 2024?
It may be tempting to look at big-name companies like S&P/ASX 200 Index (ASX: XJO) mining stock Fortescue Metals Group Ltd (ASX: FMG).
Indeed, Fortescue shares have had a terrific run over the past year.
The Fortescue share price is up 28% over 12 months, and the ASX 200 miner has gained 44% just since 13 September.
But there's a smaller ASX stock that's been outpacing those juicy gains. And it could have an even bigger year ahead in 2024.
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ASX stock defending the skies
The company in question is Droneshield Ltd (ASX: DRO).
The ASX tech stock is up 66% over 12 months, with shares having gained a whopping 164% since the 28 June lows.
Business has been booming for the drone defence company. And you need only skim global news headlines to see why.
From nation-based militaries to paramilitary organisations, the use of armed drones in global conflicts is increasing at a frightening pace. The Australian Navy has recently come under scrutiny for its own vulnerabilities to potential hostile drone attacks.
For the December quarter, the ASX stock reported an all-time high of $48 million in customer cash receipts and grants. With 80% of its revenues derived from repeat customers, that adds some sustainability to the outlook of future sales.
And the company pleased investors by recording its maiden before tax profit of $4 million for calendar year 2023. That was a big improvement from the loss of $2.9 million in 2022.
Droneshield's balance sheet also looks solid, with the company holding a cash balance of $58 million as at 31 December.
On the growth front, the ASX stock had a $30 million contracted order backlog entering 2024 along with a sales pipeline of more than $400 million.
At the time of the update, Droneshield CEO Oleg Vornik said, "We are seeing continuing peak demand from our customer base globally … and we are ready operationally to meet this demand."
So, if you're looking for an ASX stock poised for a bull run in 2024, forget Fortescue shares and have a deeper look into Droneshield.
