That's because the team at Bell Potter is bullish on it and sees strong potential returns ahead for investors with a high tolerance for risk.

Which ASX defence stock?

The stock in question is AML3D Ltd (ASX: AL3).

It is a welding, metallurgical science, robotics, and software business, which produces automated 3D printing systems that utilise wire additive manufacturing technology (WAM) to produce metal components and structures.

Bell Potter was pleased to see the ASX defence stock announce new contract wins. This includes an order from the US Navy. It said:

AL3 recently announced $12.5m in new orders, including a $9.9m follow-on order from Newport News Shipbuilding (four ARCEMY X systems) and a $2.6m parts manufacturing order for the US Navy. NNS is a subsidiary of major US defence prime contractor Huntington Ingalls Industries Inc (NYSE: HII), market capitalisation US$14.5b), is AL3's largest order to date and complements two ARCEMY X systems acquired by NNS in October 2025.

The US Navy order through BlueForge Alliance is for five high-demand submarine components which are no longer supported by the incumbent manufacturer. BlueForge Alliance is an industrial base integrator for the US Navy.

This comes at a time when the company's balance sheet is looking particularly strong. It adds:

AL3's balance sheet is strong with cash of $31m and no debt at 31 December 2025. We have incorporated AL3's latest financial results and the new orders into our outlook. The net result is tempering our revenue expectations for FY26, and upgrades to outer years.

Shares tipped to rocket

According to the note, Bell Potter has reaffirmed its speculative buy rating and 40 cents price target on the company's shares.

Based on its current share price of 21 cents, this implies potential upside of 90% for investors over the next 12 months.

Commenting on its recommendation, the broker said:

AL3's technology is particularly suited to maritime applications, giving it strong leverage into demand growth from the US Navy's Maritime Industrial Base and the US SHIPS Act. Over FY26-27, we expect AL3 to increase deployment of ARCEMY systems to the US and Europe, increase prototyping activity and ultimately commence commercial scale production of components.

There is potential for the Navy LOI to expand beyond the Maritime Industrial Base to land-based assets. AL3 will also look to deploy its technology into non-defence sector industrial manufacturing.

The post Is this ASX defence stock the next DroneShield? appeared first on The Motley Fool Australia.

You do not need to pick individual stocks straight away. You do not need to forecast earnings next quarter. And you definitely do not need to trade every week.

Exchange-traded funds (ETFs) can provide instant diversification and exposure to global markets with a single trade.

With that in mind, here are three ASX ETFs that could make sense for beginner investors in March and beyond.

iShares S&P 500 ETF (ASX: IVV)

The first ETF for beginner investors to consider buying is the iShares S&P 500 ETF.

This fund tracks the famous S&P 500 index, giving investors exposure to 500 of the largest stocks in the United States. That includes businesses such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Walmart (NYSE: WMT).

Rather than trying to pick which US stock will perform best, this ASX ETF spreads your investment across the broad US market. The S&P 500 index has historically delivered strong long-term returns, supported by innovation, corporate profitability, and economic growth.

For beginners, this type of broad exposure can provide a solid foundation.

Betashares Australian Quality ETF (ASX: AQLT)

If you want exposure closer to home, the Betashares Australian Quality ETF could be worth a look.

This ASX ETF focuses on high-quality Australian shares that boast strong balance sheets, stable earnings, and high return on equity. It aims to tilt towards the best businesses rather than simply tracking the market.

Holdings often include established names with durable competitive positions and solid financial metrics.

For a new investor, a quality-focused approach can reduce exposure to weaker businesses and provide a smoother ride over time. This fund was recently recommended to clients by analysts at Betashares.

VanEck Morningstar Wide Moat AUD ETF (ASX: MOAT)

Another beginner-friendly option is the VanEck Morningstar Wide Moat AUD ETF.

This ASX ETF invests in US stocks that have sustainable competitive advantages. These advantages can include brand strength, intellectual property, or cost leadership.

Its holdings change periodically but currently include shares such as United Parcel Service (NYSE: UPS), Bristol-Myers Squibb (NYSE: BMY), and Huntington Ingalls Industries (NYSE: HII).

Instead of chasing fast-growing but speculative businesses, this fund focuses on shares that can defend their profits over the long term. This has proven to be a highly successful strategy for legendary investor Warren Buffett. And it is never a bad idea for beginners to follow in his footsteps.

The post 3 ASX ETFs for beginner investors to buy in March appeared first on The Motley Fool Australia.