ASX stock Cash Converters Ltd (ASX: CCV) has delivered its sixth consecutive annual dividend of 2 cents per share, which, at the current share price, equates to a dividend yield of 6.7%.

But the analyst team at Shaw and Partners believes there is also share price upside from here, with a buy rating on the shares and a bullish share price, which I’ll get to shortly.

First, let’s have a look at Cash Converters’ recently released full-year results.

Profit down in year of transition

The company’s net profit fell 20% year-on-year to $19.7 million, on revenue of $429.2 million, up 11%.

The company’s gross loan book fell 3% to $236.6 million while cash on hand fell 49% to $37.2 million.

Chief Executive Officer Sam Budiselik said FY26 was a year of change for the company.

He added:

We are pleased to report a full-year result reflecting the deliberate execution of our strategic transformation, including exiting payday lending, materially growing the new Cashies Loan book and substantially expanding our corporate store network. While this transformation has created near-term earnings volatility as the composition of the Group’s earnings has changed, we now have a simpler business supported by a broader base of growing retail and international earnings. Following the successful launch of Cashies Loan, the Group has simplified its personal lending offering, improving the customer journey and reducing servicing costs. The Cashies Loan book reflected strong demand closing the year up almost five times at $114.1m ($23.1m at 30 June 2025). The overall quality and composition of the Group’s loan portfolio continued to improve, with the Group Net Loss Rate declining to 11.1%, from 16.0% in FY25. Legacy payday loans now comprise only 2.4% of the Group’s $236.6m total gross loan book.

Mr Budiselik said the company’s store segment delivered strong growth, with operating EBITDA up 49.7% to $46.8 million and same store sales increasing 13%.

The company is also expanding its luxury store concept, with third party AI authentication technology enabling an expansion in the product range.

Shares looking cheap according to broker

Shaw and Partners said in its note to clients that the results were as expected.

They added:

CCV is demonstrating that it can drive synergy and efficiency through corporatisation of its franchised store networks – a key element of our BUY recommendation. Further store acquisitions are signalled for FY27.  

Shaw and Partners said the company was trading well below the valuation levels of its international industry peers.

They have a price target of 41 cents on Cash Converters shares compared to 29.5 cents currently.

Cash Converters is valued at $209.9 million.

The post This high-yield ASX stock could deliver 40% share price gains: Broker appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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.

Electro Optic Systems Holdings Ltd (ASX: EOS) shares are charging higher on Tuesday after the defence tech company released its half-year results.

At the time of writing, the EOS share price is up a sizeable 13.02% to $9.72.

That takes its gain over the past month to more than 40% and continues what has been a very strong run for shareholders.

With the stock pushing higher again today, it appears investors are clearly liking what they see.

So, can EOS shares keep climbing from here?

Revenue jumps 283%

The numbers show just how quickly the business has grown over the past year.

EOS reported revenue from continuing operations of $168.8 million for the six months to 30 June, up 283% from $44.1 million a year earlier.

Defence Systems drove most of the increase, with revenue climbing to $163.7 million from $38.8 million. Space Systems was largely flat at $5.1 million, compared with $5.3 million last year.

The big improvement in revenue also flowed through to earnings. Underlying EBITDA came in at $21.6 million, a big turnaround from the $14.9 million loss recorded in the prior corresponding period.

However, EOS still reported a statutory net loss after tax of $33.7 million. This included a $34 million non-cash accounting adjustment linked to its MARSS acquisition.

Gross margin came in at 58%, down from 76% a year ago. The prior period benefited from a one-off $12 million reversal of late delivery penalties.

Order book keeps growing

There was more good news in the order book.

EOS finished June with an unconditional order book of around $846 million, up 84% from $459 million at the end of December. It is also almost 5 times the $170 million reported a year ago.

The company signed more than $300 million of new orders during the half, with most of its current order book expected to be delivered through the rest of 2026 and during 2027.

The recently acquired MARSS business is also off to a strong start.

MARSS has already secured around $200 million of orders in 2026, while giving EOS greater exposure to AI-enabled command and control systems and counter-drone tech.

EOS ended June with $256 million in unrestricted cash, leaving the company well funded as it works through its growing order book.

Can EOS shares keep climbing?

There’s plenty going right at EOS at the moment.

Management expects FY26 revenue of between $360 million and $400 million, which would be a record result for the company.

Strong demand across the defence sector is also supporting the outlook, particularly for counter-drone systems, remote weapon systems, and high-energy laser weapons.

EOS is currently chasing several opportunities across these areas, while its order book provides better visibility for future revenue growth.

Of course, the share price has already run a long way. EOS shares are up more than 40% in just one month, so expectations are now much higher.

Still, with revenue growing very quickly, and the order book standing at $846 million, there could be more room to run.

The post EOS shares rocket 13% today. Can the rally keep going? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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 Electro Optic Systems. 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.

The BHP Group Ltd (ASX: BHP) share price reached a new all-time record of $68.22, up 1.6%, on Tuesday.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is 0.8% higher as earnings season continues.

BHP shares have now exceeded all the new 12-month price targets set by experts since its FY26 report on 18 August.

There is no news from the ASX 200’s most valuable company by market capitalisation today.

What’s pushing the BHP share price higher?

It’s certainly an interesting situation given there is just one buy rating among 11 experts since the miner released its results.

That buy call came from Morgan Stanley.

The top broker retained its buy call on the ASX 200 mining giant and raised its 12-month target from $67 to $67.50 post-results.

That was the highest target price among the 11 experts.

Nine experts reiterated their hold calls on BHP shares after the FY26 report.

However, Morgans downgraded the ASX 200 mining share to a sell with a $55.30 target, implying a 19% downside ahead.

The lowest 12-month target among the 11 brokers is $51.43 from Deutsche Bank.

This suggests a potential 24% downside over the next 12 months.

What did BHP report for FY26?

BHP reported a record underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) of US$32.9 billion for FY26.

That was 27% higher than FY25.

A 6% unit cost reduction across major assets and increased production at its coal and iron ore mines contributed to a 30% profit boost.

Underlying attributable profit came in at US$13.2 billion, up 30%, and net operating cash flow was US$21.8 billion, up 17%.

While BHP has a long history as an iron ore giant, in recent years, it has become the world’s largest copper producer.

The red metal accounted for 54% of BHP’s EBITDA in FY26.

What else is going on?

The miner is benefiting from a lift in the iron ore and copper prices today.

The copper price is up 0.3% to US$6.61 per pound on Tuesday.

Copper hit a new all-time price peak of US$6.71 per pound on 5 August amid higher demand due to the green energy transition.

The copper price is up 16% in the 2026 calendar year so far and up 48% over 12 months.

The iron ore price is up 0.14% to US$95.34 per tonne today.

Iron ore slipped below US$100 per tonne just after the start of the new financial year.

This followed about three years of trading mostly above it.

Trading Economics analysts explained the recent weakness:

China’s steel output fell 3.6% year-on-year to 76.93 million tons in July, the lowest for the month since 2017, while inventories remained elevated.

Weak property activity weighed on demand, with home prices down 3.2% year-on-year, while only about one-third of steelmakers were profitable.

China’s July iron ore imports also fell 4% month-on-month to 108.09 million tons as shrinking steel margins prompted some mills to undertake maintenance.

However, fresh stimulus measures and expectations of higher demand ahead of the September peak season are supporting the iron ore price today.

China is planning measures to boost domestic demand and growth.

The National Development and Reform Commission (NDRC) is also urging local governments to accelerate major projects.

Chinese steel production is a key driver of global iron ore demand.

The post BHP share price hits new record high appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.