Up 260% in 2024, this ASX All Ords stock just hit another all-time high

Investors keep lifting the bid on this tech player.

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ASX All Ordinaries (ASX: XAO) shares are in the green in 2024, with the All Ords index up 2.4% this year to date. Some individual shares have crushed this result, hitting all-time highs along the way.

DroneShield Ltd (ASX: DRO) is a case in point. Shares in this tech player have rocketed in trading today, nudging an all-time high of $1.37 in morning trade. The DroneShield share price is swapping hands 5.2% higher at $1.35 apiece at Wednesday's close.

This marks a massive 260% increase in 2024 alone, leaving the broad index behind in its dust.

So, what's driving this impressive surge in the ASX All Ords stock?

Why are investors buying this ASX All Ords stock?

DroneShield is a counter-drone technology company currently working with the US Military for its drone-defense systems. Recent contract wins have seen investors bid up the ASX All Ord stock rapidly this year.

In May, it announced a $5.7 million repeat order from a US Government customer for its advanced Counter-UxS systems. According to my colleague James, this order will be fulfilled throughout 2024, potentially enhancing DroneShield's revenue and market position.

DroneShield CEO Oleg Vornik also shed light on the company's growth potential in a recent interview. Vornik discussed the possibility of increasing revenues from $55 million last year to between $300 million and $500 million annually within the next five years.

Vornik highlighted that the counter-drone market was currently underserved and that he expected "customers need to buy 100 times more than what they purchased" due to strong public and private market demand.

DroneShield's latest quarterly results underscore the growth of these markets. The company reported $16.4 million in revenue for the 3 months to March 2024.

That signifies a 900% increase in sales from the same period last year. In my view, this is certainly another reason investors have been on a feeding frenzy in this name.

What's next?

Bell Potter analysts upgraded the stock to a buy rating in a note from May, anticipating strong performance from the tech company.

The broker forecasted $97 million in sales and $24.4 million in earnings for 2024, representing year-over-year increases of 80% and 163%, respectively. If DroneShield meets these targets, its share price could continue its upward trajectory.

Looking forward, the company's sales pipeline stood at $519 million by the end of Q1 CY 2024. Management said it had $27 million in contracted orders currently underway.

All we can do is wait for the company's next earnings results to see if it is on track to hit estimates.

Foolish takeaway

Shares in this ASX All Ords stock have soared in 2024, driven by its business growth initiatives and significant contract wins.

With the stock trading at $1.35 per share, it has climbed 260.8% since January this year and is up a hefty 434% in the last 12 months.

I think DroneShield's future certainly looks promising. Investors may want to keep an eye on this ASX All Ords stock as it continues to navigate the burgeoning counter-drone market.

Motley Fool contributor Zach Bristow 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.

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