You don't need thousands of dollars to be an investor — sometimes, all it takes is $500 and a plan.
With markets constantly presenting new opportunities, even a small amount of capital can go a long way if you focus on quality businesses with long-term potential.
Whether you're just getting started or adding a tactical boost to your portfolio, here are two ASX shares that analysts think are worth considering in May.
DroneShield Ltd (ASX: DRO)
Analysts at Bell Potter say that this counter drone technology company could be an ASX share to buy with your $500.
It provides artificial intelligence-based platforms for protection against advanced threats such as drones and autonomous systems. This includes bespoke counter drone (or counter-UAS) and electronic warfare solutions and off-the-shelf products designed to suit a variety of terrestrial, maritime or airborne platforms.
Demand has been growing rapidly for the company's products, with sales up materially year on year so far in 2025. This has caught the eye of Bell Potter, it said:
DroneShield (DRO) recently released its Q1 update and Appendix 4C, which detailed a record Q1 result and a level of contracted revenue ($94.4m) for delivery in CY25 that substantially exceeds the CY24 result ($57.5m). The company recorded Q1 revenue of $33.5m (+102% vs pcp), including SaaS revenues of $1.7m (+198% vs pcp), and cash receipts of $16.7m (+135% vs pcp).
DroneShield remains our key pick in the Defence sector, with macro tailwinds driving increasing customer demand and the company well capitalised to fund further R&D to maintain its market leading position. We retain our BUY recommendation.
Bell Potter currently has a buy rating and $1.50 price target on its shares.
HMC Capital Ltd (ASX: HMC)
Goldman Sachs thinks that this diversified alternative asset manager could be an ASX share to buy in May.
It likes the company due to its growth strategy and recent diversification away from traditional real estate. It said:
We are Buy rated given HMC's FUM growth strategy and diversification away from classic Real Estate and into Digital Infrastructure (including DigiCo) among various other strategies including Energy Transition and Private markets.
On the latter we see four key factors supporting FUM growth in the medium term, including: i) increased investor allocation to private markets, ii) a positive skew in borrower preferences to private credit, iii) a structural shift in the public markets to larger deal sizes, and iv) an acceleration in commercial real estate credit due to Australia's undersupply of housing stock.
Goldman Sachs has a buy rating and $10.90 price target on its shares.
