With May now underway, I think it could be a good time to look at a few ASX shares that offer long-term potential.
Some have strong structural tailwinds behind them. Others are building scale, strengthening their market position, or offering exposure to themes that could become more important over time.
With that in mind, here are two ASX shares I rate highly this month.
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DroneShield Ltd (ASX: DRO)
DroneShield is one of the most exciting growth shares on the ASX, in my opinion.
It operates in counter-drone technology, which is still a developing market. That alone makes it higher risk, but I think it also gives the business a lot of long-term potential.
The use of drones is expanding quickly across defence, security, and commercial settings. That creates a growing need to detect, track, and respond to drone threats.
Importantly, the company is not selling a product into a mature market. It is helping define an emerging category. If counter-drone systems become a more normal part of defence and critical infrastructure spending, then DroneShield could have a much larger opportunity ahead.
There will still be volatility. Contracts can be lumpy, expectations can move quickly, and the share price can react sharply to news flow.
But I believe the long-term backdrop remains supportive. Defence spending is rising, drone threats are becoming more visible, and governments are likely to keep investing in technology that improves security.
For me, DroneShield is the higher-risk, higher-upside pick.
Breville Group Ltd (ASX: BRG)
Breville Group is a very different type of business.
It sells premium kitchen appliances across global markets, with a strong position in coffee machines and other higher-end household products.
What I like about Breville is that it is not just a retailer or a simple appliance brand. It has built a reputation for design, innovation, and product quality. That gives it more control over its destiny than many consumer businesses.
The coffee opportunity is particularly attractive in my view. Consumers continue to invest in better at-home coffee experiences, and Breville is well positioned in that category. It has a strong brand, a growing international footprint, and the ability to keep launching new products that appeal to households willing to pay for quality.
Of course, consumer spending can be uneven. Higher interest rates and cost-of-living pressures can affect discretionary purchases.
But I think Breville is the kind of company that can keep expanding over time by entering new markets, improving its range, and building deeper brand loyalty.
For investors looking beyond the next few months, I believe it has the makings of a strong global compounder.
Foolish takeaway
If I were buying ASX shares in May, I would be comfortable considering these two.
DroneShield offers exposure to a fast-growing defence technology niche, while Breville gives investors a global consumer brand with long-term expansion potential.
In my opinion, each has a clear reason to own it and a path to becoming more valuable over time.
