The ASX is packed with small and mid cap stocks that are quietly building world-class businesses behind the scenes.
They may not be household names yet, but they have the growth engines, competitive advantages, and scalability to potentially become major players by the end of the decade.
If you're looking for ASX stocks with the kind of long-term upside that could transform a portfolio, analysts think these three mid-caps stand out.
DroneShield Ltd (ASX: DRO)
DroneShield is one of the most exciting defensive technology players on the ASX. As drones become increasingly prevalent in both commercial and military settings, demand for counter-drone and electronic warfare systems has surged worldwide.
The company's cutting-edge technology is now deployed by military customers, government agencies, and critical infrastructure operators across multiple continents. Its product suite has expanded rapidly, margins are improving as scale increases, and recent contract wins highlight growing credibility with tier-1 customers.
Defence spending globally is rising and counter-drone systems are becoming a standard requirement rather than a niche specialty. And with a growing pipeline and a technology advantage over many competitors, DroneShield could easily become a globally recognised name by 2030.
Bell Potter is bullish on its outlook and has a buy rating and $5.30 price target on its shares.
Gentrack Group Ltd (ASX: GTK)
Another mid cap ASX stock that could be a top buy is Gentrack. It provides software used by utilities, airports, and energy retailers to manage billing, customer information, compliance, and operations. These systems are mission-critical and once they are installed, they are deeply embedded and extremely difficult to replace.
In recent years, Gentrack has undergone a major transformation, modernising its product suite and winning significant new contracts across the world. The energy transition, with its rising number of green retailers, decentralised grids, and complex billing requirements, is creating long-term structural demand for the kind of software Gentrack specialises in.
If the company continues to secure global market share and deepen relationships with major utilities, it could grow very strongly over the remainder of the decade.
Bell Potter is also a fan of Gentrack. It has a buy rating and $11.00 price target on its shares.
Temple & Webster Group Ltd (ASX: TPW)
Finally, Temple & Webster has spent the past few years cementing itself as the go-to destination for furniture and homewares online. While its category has traditionally been dominated by large physical retailers, the structural shift toward online shopping shows no sign of slowing and it is capturing that trend better than anyone else.
With online penetration in homewares still far below levels seen in the US and Europe, Temple & Webster could be multiple times larger by 2030 if industry adoption continues.
Macquarie is a fan of the company and recently put an outperform rating and $24.15 price target on its shares.
