Shares in Electro Optic Systems Holdings Ltd (ASX: EOS) are up more than 15% after the company announced it had won a $700 million contract.

The anti-drone technology company said it had struck an agreement with a Middle Eastern gulf state for the provision of a nation-wide, counter-drone defence system valued at £370m (~A$700m).

This is the largest contract secured by the company to date.

Increase in drone warfare driving need for countermeasures

Electro Optic Systems said in a statement to the ASX that recent conflicts in the Middle East had highlighted the importance of being prepared for anti-drone warfare.

The company added:

Drone attacks have inflicted significant physical and economic damage and traditional air-defence systems based on expensive interceptor missiles have faced challenges. More effective and sustainable solutions are being sought. EOS’ NiDAR counter-drone system, acquired as part of the recent MARSS acquisition, is an advanced AI-enabled command and control system (C2), designed specifically for counter drone defence, embracing both airborne and coastal seaborne drone detection. As required, systems fielded by MARSS in the Middle East are showing throughout the recent crisis to be an effective and economical counter-drone system.

Electro Optic Systems said it expected 80% of the revenue to be earned in the first 12 to 24 months after the contract becomes unconditional, with the rest of the revenue related to ongoing support over a four-year period.

The company said it also believed that the deal could lead to future sales opportunities.

Milestones yet to be overcome

Electro Optic Systems has to fulfil certain conditions before the deal becomes unconditional, including obtaining relevant export licences.

The company added:

The Contract is expected to be profitable and cashflow positive over its term, noting that, as is the nature with integration projects such as this, there will be a significant short-term working capital funding requirement in the early stages of the Contract which is expected to turn positive during mid-2027. While noting that the nature of this Contract is similar to others fulfilled by EOS and existing MARSS resources in the Gulf region, EOS believes that this Contract represents an inflection point for the Company in its strategy to become a major player in the global integrated, counter drone market as it represents a significant expansion of both the products and services previously provided.

The company also noted that the contract contained financial and operational risks, “some significant, which EOS will seek to manage”.

Electro Optic Systems shares traded as high as $12.91 on the news before settling back to be 16.3% higher at $12.30.

The company is valued at $2.55 billion.

The post Which ASX drone company is up more than 15% on big contract news? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has positions in Electro Optic Systems. 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.

Super Retail Group vs JB Hi-Fi shares

Are you tossing up between Super Retail Group Ltd (ASX: SUL) and JB Hi-Fi Ltd (ASX: JBH) shares for your first retail stock? Both are giants on the ASX with well-known brands and loyal shoppers—but their size, business focus, and investment fundamentals are actually more distinct than you might expect. Let’s weigh them up side by side so you can make a confident choice as a beginner investor.

The case for Super Retail Group

Super Retail Group is a powerhouse behind some of Australia’s favourite specialist retail chains: Supercheap Auto, Rebel, BCF, and Macpac. The group is all about automotive parts, sporting goods, outdoor, and adventure equipment, run both in-store and online across Australia and New Zealand. With a large, established store network (797 stores), Super Retail has carved out a strong niche catering to DIY car lovers, weekend warriors, and active Aussies alike.

Notably, Supercheap Auto delivers the largest chunk of sales, while Rebel drives much of its sporting goods revenue.

A few fundamental highlights stand out for Super Retail Group:

• Attractive dividend yield: The current 5.08% fully franked dividend yield is generous, especially for income-focused beginners—this means more of the dividend is kept in your pocket after tax.
• Lower price-to-earnings (P/E) ratio: Its P/E of 14.13 is lower than JB Hi-Fi, which might hint at better relative value, though comparing directly has its complications.
• 100% franked dividends: All recent and upcoming dividends are fully franked, boosting their after-tax value for Aussie shareholders.

The case for JB Hi-Fi

JB Hi-Fi is synonymous with home entertainment and tech gadgets at competitive prices. With its core stores plus JB Hi-Fi Home, The Good Guys, and newly added e&s stores, the company is a leader in consumer electronics and household appliances. JB Hi-Fi now operates both in Australia and New Zealand, and its online platform keeps growing as shopping habits change.

For those new to investing, JB Hi-Fi brings a few standout traits:

• Larger, more established company: JB Hi-Fi sports a $7.69 billion market cap, more than double Super Retail Group, with a dense store network and massive brand recognition.
• Solid earnings: With a reported earnings per share (EPS) of 4.467, the business is currently pumping out robust profits.
• Consistent, franked dividends: Its 4.82% fully franked dividend yield remains solid for income-seeking investors. Regular and special dividends come through like clockwork.

Valuation comparison

With both companies firmly in the ASX retail heavyweight camp, let’s line up their key metrics:

Metric	Super Retail Group	JB Hi-Fi
Market Cap	$2.94 billion	$7.69 billion
P/E Ratio	14.13	15.64
Dividend Yield	5.08% (100% franked)	4.82% (100% franked)
Earnings per Share (EPS)	0.906	4.467
Dividend per Share	0.65	3.37
Year To Date Return	-16.1%	-23.9%

It’s worth noting that Super Retail Group’s lower P/E ratio could appeal to value-focused investors, and its slightly higher yield offers a bit more on the income front. JB Hi-Fi boasts far stronger EPS and a much bigger overall size.

Recent share price momentum

Comparing recent share price performance up to 6 October 2026:

• Super Retail Group: Closed at $13.03, up 1.8% on the day, but down 16.1% year to date.
• JB Hi-Fi: Closed at $70.29, up 0.63% on the day, but off 23.9% since the start of the year.

So, both have lagged the market recently, but JB Hi-Fi’s drop has been steeper.

Which is the better buy?

If I had to choose a retail stock for a beginner investor, my pick would be Super Retail Group. Here’s why:

You’re getting a business with a slightly cheaper-looking P/E, a higher dividend yield, and 100% franking—great for maximising after-tax returns. While JB Hi-Fi is the much bigger name and has an enviable track record, its shares have fallen further year-to-date, and its yield is a bit lower for incomers. Both have strong brands and essentially zero franking drag, so the choice comes down to value and yield. Based on the available figures, I think Super Retail Group is better positioned to offer steady income with a potentially less demanding valuation for a new investor’s first step into retail shares.

The post Super Retail Group vs JB Hi-Fi: Which retail stock is better for beginners? appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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 Super Retail Group. The Motley Fool Australia has positions in and has recommended Super Retail Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

ASX shares slumped lower on Thursday thanks to a selloff across the banks, materials and mining sectors, driven by falling commodity prices and ongoing inflation and interest rate concerns.

But during times when the market looks wobbly, it’s best to pinpoint which shares could be some of the best performers going forward.

Here are three of them, and they’re tipped to return up to 162% over the next 12 months.

Zip Co Ltd (ASX: ZIP)

Zip shares closed around 2% lower on Thursday afternoon, at $2.08 a piece. The decline means the shares are now down around 38% for the year-to-date.

There hasn’t been any price-sensitive news out of the buy now, pay later provider over the past month or so to explain the latest decline. It’s likely the selloff is a continuation of heavy headwinds and the company’s underwhelming growth outlook in its FY26 results.

Zip said that for FY27, Zip is targeting a cash EBTDA of $340 million, up another 26%, which is lower than what the company achieved for FY27. 

There has also been another rotation away from high-growth tech shares like Zip recently as inflation and interest rate fears bubble back to the surface.

But the experts are still very positive the company can turn things around. According to Market Index data, all brokers have a strong buy rating on the ASX shares. The $3.95 average target price also implies an upside of around 90% at the time of writing.

Catapult Sports Ltd (ASX: CAT)

Catapult shares also closed the day flat on Thursday, at $3.17 each. For the year-to-date the shares are down around 26%.

Again, there hasn’t been any price-sensitive news out of Catapult since it posted its FY26 results in May.

It looks like investors are still concerned about the execution risk of its new low churn plan and whether it can translate into a higher annual contract revenue and revenue increase.

The company was also caught up in the latest tech-sector-wide sell-off, which acted as a further share price headwind.

But the experts are confident that the company can continue growing. Market Index data shows all brokers have a strong buy rating on the shares. At the $5.45 average target price implies an upside of around 72% at the time of writing.

Elevra Lithium Ltd (ASX: ELV)

Elevra shares also fell lower into the red on Thursday. At the close of the ASX, the lithium producer’s shares were down around 4% to $4.99 each. That means the shares are now down 37% for the year-to-date.

The latest downturn appears to be off the back of the company’s latest ASX announcement. Ahead of the market open on Thursday, Elevra announced that it has executed a binding Spodumene Concentrate Supply Agreement with LG Energy Solution for the supply of spodumene concentrate produced at North American Lithium in Québec.

The Agreement provides for the aggregate supply of 240,000 dry metric tonnes of spodumene

concentrate over a three-year term commencing from the date of the first shipment, which is expected to be delivered in the 2026 calendar year.

Investors have reacted cautiously, possibly due to broad pressure on lithium prices, and ongoing regulatory uncertainty.

As a pure-play lithium producer, the company’s shares are closely tied with lithium prices. The metal’s price, according to Trading Economics, is down around 22% over the past month.

Market Index data shows that brokers are still bullish about the outlook for the ASX shares. The majority have a buy rating on the shares and the $13.05 average target price implies a potential upside of 162%, at the time of writing.

The post Brokers tip these 3 ASX shares to jump 72% to 162% appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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 Catapult Sports. The Motley Fool Australia has positions in and has recommended Catapult Sports. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.