Author: openjargon

The S&P/ASX 200 Index (ASX: XJO) is enjoying a strong session on Tuesday, with gains spread across most of the market.

At the time of writing, the ASX 200 is up 0.75% to 9,171 points, putting the index at its highest level in 8 trading days.

It also has the market on track for its best session in around 3 weeks, following a fairly mixed run through August.

And there isn’t one big piece of news behind the move. Instead, strength across miners, healthcare, energy, and financial stocks is helping push the market higher.

So, what is driving the ASX 200 today?

Most of the market is in the green

The buying is fairly broad, with 120 of the largest 200 companies trading higher, compared with 74 falling and 6 unchanged.

Mining stocks are doing their part, led by another strong session from BHP Group Ltd (ASX: BHP), which is up 1.41% to $68.07.

The mining giant has again pushed to a record high, with strong copper prices continuing to support the stock.

Rio Tinto Ltd (ASX: RIO) is also up 1.55% to $180.18, while Northern Star Resources Ltd (ASX: NST) has gained 1.15% to $24.67.

Healthcare and energy shares rise

Healthcare is another strong area of the market today.

CSL Ltd (ASX: CSL) shares are up 1.78% to $172.12, and Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH) has climbed 0.54% to $37.29.

Energy stocks are also mostly higher after several companies reported results this morning.

Woodside Energy Group Ltd (ASX: WDS) shares are up 0.93% to $33.79 after the company reported its half-year results and outlined plans to cut costs.

The major banks are higher as well. Commonwealth Bank of Australia (ASX: CBA) is up 0.24% to $157.25, while National Australia Bank Ltd (ASX: NAB) has risen 0.71% to $38.28.

Reporting season keeps things busy

Reporting season is still driving plenty of individual share price moves.

Coles Group Ltd (ASX: COL) shares are up 0.66% to $22.79 after the supermarket giant released its FY26 results earlier today.

The local market is also outperforming, with a mixed lead from Wall Street. The Nasdaq Composite Index (NASDAQ: .IXIC) fell 0.8% overnight as chip stocks weakened, while the S&P 500 Index (SP: .INX) slipped 0.3% and the Dow Jones Industrial Average Index (DJX: .DJI) added 0.3%.

Investors are also watching the RBA after the minutes from its August meeting were released just before midday today.

The RBA left the cash rate unchanged at 4.35% earlier this month after 3 increases in 2026, while keeping the door open to another rise if inflation remains too high.

The post Why is the ASX 200 having its best day in 3 weeks? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• The average superannuation balance for 50-year-olds in Australia in FY27. How does yours compare?
• Here are the top 10 ASX 200 shares today
• 5 things to watch on the ASX 200 on Monday
• ASX 200 healthcare shares soar 9% amid notable FY26 reports from CSL, Pro Medicus

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 CSL. The Motley Fool Australia has recommended BHP Group and CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Metrics Master Income Trust (ASX: MXT) share price is in focus after announcing a monthly unfranked distribution of 1.46 cents per unit for August 2026, with payments set for 8 September.

What did Metrics Master Income Trust report?

• Distribution amount: 1.46 cents per unit (unfranked), relating to August 2026
• Ex-dividend date: 31 August 2026
• Record date: 1 September 2026
• Payment date: 8 September 2026
• Distribution Reinvestment Plan (DRP) available at no discount

What else do investors need to know?

Metrics Master Income Trust’s latest distribution continues its pattern of providing monthly income to unitholders. This announcement delivers clarification for investors seeking reliable, regular income streams from their investment in MXT.

The distribution is entirely unfranked, meaning investors may benefit differently depending on their individual tax circumstances. Unitholders can choose to reinvest their distribution through the DRP, or receive it as a cash payment.

What’s next for Metrics Master Income Trust?

Investors can expect distributions to continue on a monthly basis, reflecting the trust’s ongoing strategy of delivering stable income. The trust’s transparent announcements about key dates and reinvestment options may support unitholder planning and portfolio management.

Looking ahead, ongoing market conditions and the performance of MXT’s underlying loan assets will continue to influence future distributions and trust performance.

Metrics Master Income Trust share price snapshot

Over the past 12 months, Metrics Master Income Trust shares have declined 6%, trailing the All Ordinaries Index (ASX: XAO), which has risen 1% over the same period.

View Original Announcement

The post Metrics Master Income Trust posts unfranked August 2026 distribution appeared first on The Motley Fool Australia.

More reading

• How much passive income could I earn from a $600,000 superannuation balance?

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 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. 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.

The Peet Ltd (ASX: PPC) share price is in focus after the company delivered record earnings for FY26, on the back of strong sales and robust performance in Western Australia and Queensland.

What did Peet report?

• Net operating profit of $103.4 million, up 77% on the prior year
• Operating earnings per share of 22.1 cents, also up 77%
• Total FY26 fully franked dividends of 13.0 cents per share, up 68%
• Revenue rose 3% to $450.2 million
• EBITDA grew 54% to $162.8 million, with margin expanding to 36%
• Contracts on hand increased 39% to $851 million

What else do investors need to know?

Peet sold 2,996 lots during the year, up 8%, while settlements rose to 2,665 lots. The group’s development pipeline remains extensive, comprising more than 26,400 lots across 37 projects with an estimated end value of $11.5 billion.

Gearing reduced to 24.8%, while the company maintained a strong balance sheet with net debt decreased to $201.3 million. Peet also increased its activated pipeline to 80%, offering solid visibility for future earnings.

What did Peet management say?

Chief Executive Officer Brett Fullarton said:

FY26 represents another exceptional year for Peet, with record operating profit, significant earnings growth and increased returns to shareholders. The result reflects the strength of our national portfolio, favourable conditions across several of our key markets and the disciplined execution of our strategy.

What’s next for Peet?

Peet enters FY27 in a strong financial position with $851 million in contracts on hand and a highly activated project portfolio. The company expects to benefit from ongoing demand in Western Australia, Queensland, and South Australia, while remaining alert to improvements in Victoria and NSW/ACT.

Management highlighted positive structural factors for the residential housing sector, including population growth, limited supply, and policy support for buyers. Peet intends to leverage its pipeline and balance sheet strength to pursue growth opportunities, mindful of settlement timing and broader market conditions.

Peet share price snapshot

Over the past 12 months, Peet shares have risen 3%, slightly outperforming the All Ordinaries Index (ASX: XAO), which has increased 1% over the same period.

View Original Announcement

The post Peet FY26 earnings: Profit and dividend surge on record sales appeared first on The Motley Fool Australia.

More reading

• MyState FY26 earnings: Strong profit growth and integration wins
• Here’s what brokers tip for Woodside shares over the next 12 months
• Abacus Group FY26 results
• Why is the ASX 200 having its best day in 3 weeks?
• Metrics Master Income Trust posts unfranked August 2026 distribution

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 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. 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.

The Tivan Ltd (ASX: TVN) share price is in focus after the company received final approvals to commence its maiden drilling program at Walshy’s Wall within the Sandover Fluorite Project. High-grade manganese samples up to 44.8% and fluorite at 98.4% CaF₂ were previously identified.

What did Tivan report?

• Regulatory approval secured from the Northern Territory Government for drilling at Walshy’s Wall
• Sacred Site Clearance Certificate received from the Central Land Council
• Maiden staged program planned: 31 reverse circulation drill holes, with nine priority holes commencing October
• Rock chip sampling returned manganese grades up to 44.8% Mn and fluorite up to 98.4% CaF₂
• Elevated copper (up to 0.5%), beryllium (up to 50ppm) and tungsten (up to 0.12%) levels identified

What else do investors need to know?

Tivan’s drilling program at Walshy’s Wall represents the company’s first systematic test of this recently discovered manganese-barite gossan. The approvals bring the drill program within the environmental and cultural heritage requirements of the Sandover project and reflect the support of both the Northern Territory Government and Traditional Owners.

The drill campaign is set to target the strongest geochemical anomalies identified during recent field work. Stage One drilling will focus on the most prospective sections, while Stage Two may expand based on initial results.

What did Tivan management say?

Executive Chairman Grant Wilson said:

We are very pleased to have secured these approvals on a timely basis, that will enable Tivan’s geology team to complete a maiden drilling program at Walshy’s Wall before the summer heat arrives. We extend sincere thanks to the Northern Territory Government and the Central Land Council.

What’s next for Tivan?

Tivan’s team is preparing to mobilise for the Stage One drilling, which will commence in October. This first stage will help the company determine if the strong surface mineralisation is mirrored at depth.

The results from the initial drilling will guide the potential rollout of Stage Two, testing the broader scale and continuity of the mineralised system. Tivan aims to unlock further value at the Sandover project and progress exploration efficiently within approved guidelines.

Tivan share price snapshot

Over the past 12 months, Tivan shares have risen 140%, outperforming the All Ordinaries Index (ASX: XAO), which has risen 1% over the same period.

View Original Announcement

The post Tivan gets green light for maiden drilling at Sandover Fluorite Project appeared first on The Motley Fool Australia.

More reading

• Tivan receives $3m IPCM grant for Speewah Fluorite Project
• Tivan appoints advisor for Speewah Fluorite Project finance update

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 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. 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.

S&P/ASX 200 Index (ASX: XJO) shares are up 0.74% to 9,168.7 points on Tuesday.

All 11 market sectors of the ASX 200 are in the green today.

Healthcare leads the pack, up 1.1%, extending its impressive recent rebound.

ARB Corporation Ltd (ASX: ARB) is the fastest riser of the ASX 200 today, up 18% on its FY26 report.

Meanwhile, Morgans has issued some new notes on three ASX shares.

They include BHP Group Ltd (ASX: BHP) shares, which hit a new all-time high today.

Let’s take a look.

Judo Capital Holdings Ltd (ASX: JDO)

The Judo Capital share price is $1.03, up 6.4% today and down 42% over 12 months. 

Judo Capital shares are the fourth fastest riser on the local bourse despite no significant announcements today.

Morgans has a buy rating on this ASX bank share after its FY26 results.

The broker said: 

FY26 PBT landed towards the top end of the revised guidance range and FY27 guidance was reaffirmed offering strong earnings growth.

EPS forecasts moderated 2-6%.

The broker shaved its 12-month price target from $1.47 to $1.42.

This suggests a potential 40% upside ahead.

Healius Ltd (ASX: HLS)

The Healius share price is 43 cents, down 0.7% today and down 49% over 12 months. 

Since the healthcare sector began its long-awaited rebound on 3 June, Healius shares have soared 29%.

Morgans has a hold rating on this ASX 200 healthcare share following its FY26 report.

The broker said: 

FY26 results were mixed, with revenue and underlying EBITDA broadly in line, but underlying EBIT 5% below consensus and at the bottom of guidance, reflecting still-thin Pathology margins.

Encouragingly, Pathology EBIT margin improved materially in 2H, while labour costs fell 2.9% and group cost growth was contained.

Agilex was again a clear positive, with revenue and earnings growth ahead of expectations.

While FY27 EBIT guidance of A$39.7m is broadly in line with expectations, the T27 target for mid-to-high single-digit EBIT margins was extended by c18 months to Dec-28, leaving us cautious on the pace and sustainability of earnings leverage.

The broker increased its price target to 43 cents, implying the stock is fully valued.

BHP Group Ltd (ASX: BHP)

The BHP share price is $67.93, up 1.2% today and up 57% over 12 months. 

BHP shares reached a new record of $68.22 in earlier trading on Tuesday.

Morgans downgraded BHP shares to a sell call after its FY26 report on 18 August.

The broker explained: 

A solid FY26 result, with an upsized final dividend of US 99cps, against a share price that appears to already factor in more upside, we lower our rating to TRIM.

Metal prices were a key driver, but BHP also maintained a solid operating performance on controllable factors against a tough backdrop in FY26.

The broker reduced its 12-month price target from $59.80 to $55.30.

This suggests a potential 18% downside ahead.

The post Buy, hold, sell: Judo Capital, Healius, BHP shares 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 positions in and has recommended ARB Corporation. The Motley Fool Australia has recommended ARB Corporation and BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX reporting season continues, with ASX majors Electro Optic Systems Holdings Ltd (ASX: EOS), PLS Group Ltd (ASX: PLS), and Bendigo and Adelaide Bank Ltd (ASX: BEN) posting their results this week.

Let’s recap how the shares are tracking today and whether brokers rate them a buy, sell, or hold.

Buy EOS shares

EOS posted a huge 283% hike in its half-year revenue this morning, and a reduced net loss of $32.9 million. Underlying EBITDA swung into profit, and its net assets grew to $391.6 million.

Going forward, EOS expects continued strong demand, driven by defence spending and escalating global interest in counter-drone technologies. 

Management has forecast FY26 revenue (including MARSS) of $360 million to $400 million, assuming global supply chains remain steady. If this comes to fruition, this would be a record result.

Clearly, investors are thrilled with the result. EOS shares are up around 13% in morning trade and changing hands at $9.75 apiece. Today’s increase means the shares are now just 2% lower year to date but a huge 93% higher than 12 months ago.

Brokers are also incredibly bullish about the outlook for EOS shares. TradingView data shows that all analysts rate the stock a strong buy. The average $13.64 target price implies a potential 40% upside at the time of writing.

Buy PLS shares

PLS posted its FY26 earnings results ahead of the market open on Monday morning. The company announced a 152% increase in revenue, a 59% increase in underlying EBITDA, and a swing into profit in NPAT (from a loss in the prior corresponding period).

The company has also announced a 5-cent-per-share, fully-franked final dividend for FY26. This is great news for investors after PLS suspended its dividend payouts in 2024 amid cratering global lithium prices.

PLS shares jumped 7% higher following the results announcement yesterday, but the share price has softened again today. At the time of writing, PLS shares are down around 4% and trading at $5.26 per share. For the year to date, shares are still up 22%.

Analysts’ sentiment about the outlook for PLS shares is divided, but the majority hold a buy/strong buy rating on the shares. The average $5.36 target price implies a potential 2% upside ahead.

Sell Bendigo and Adelaide Bank shares

Bendigo and Adelaide Bank also ported its FY26 results on Monday. The bank reported a 3% increase in cash earnings, statutory net profit after tax of $375.1 million, and a fully-franked final dividend of 33 cents per share.

Investors appear to be mostly neutral about the result, and the share price ended the day around 0.5% lower on Monday. But this morning, there seems to be an injection of confidence back into the bank stock.

At the time of writing, the ASX bank shares are up around 3% and changing hands for $10.76 a piece. The increase means the shares are now around 1.5% higher year to date.

The experts are quite reserved about what’ll happen to Bendigo and Adelaide Bank shares next, however. The majority (nine out of 14) have a hold rating on the shares, and the average $10.33 target price implies a potential 4% downside, at the time of writing.

The post Buy, hold, sell: Bendigo and Adelaide Bank, PLS, EOS shares appeared first on The Motley Fool Australia.

More reading

• EOS shares rocket 13% today. Can the rally keep going?
• What is this broker’s updated view on PLS shares after big results?
• Electro Optic Systems half-year earnings surge on booming defence demand
• 3 great dividend stocks with 6% yields to boost passive income in FY27
• 5 things to watch on the ASX 200 on Tuesday

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 Electro Optic Systems. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Some investments do not need a complicated thesis.

The iShares S&P 500 AUD ETF (ASX: IVV) gives Australian investors access to many of America’s largest companies through a single ASX-listed fund.

For me, that makes it a strong long-term option.

Access to some of the world’s strongest businesses

The IVV ETF tracks the S&P 500 Index, which contains around 500 large US companies, including Apple, Microsoft, Nvidia, Bank Of America, Walmart, Merck & Co, and Verizon.

That gives investors exposure to businesses operating across technology, healthcare, financial services, consumer products, industrials, communication services, and many other areas of the US economy.

I think this is particularly valuable for Australian investors. The ASX has some excellent companies, but our market is heavily influenced by financial and resources businesses. The US market gives investors much greater exposure to areas such as software, semiconductors, digital advertising, medical technology, and global consumer brands.

Many of the companies inside the S&P 500 also generate revenue around the world.

So while the IVV ETF invests in US-listed companies, the underlying businesses can have customers spread across North America, Europe, Asia, and other major markets.

That gives investors exposure to far more than the US economy alone.

The index can evolve over time

Another reason I like the IVV ETF is that ASX investors do not have to predict which companies will dominate the next decade.

The S&P 500 index changes as corporate America changes.

Companies that grow can become increasingly important within the index, while businesses that lose relevance can eventually become smaller holdings or leave the index entirely. For example, today Nvidia is highly important, whereas 50 years ago it was IBM.

I think that is a powerful feature for a long-term investor.

Twenty years from now, some of today’s leading businesses may still be enormous. Others may have been overtaken by companies that are only beginning their growth stories today.

An investor in the IVV ETF does not need to identify those winners in advance.

They can simply continue owning a large collection of leading US businesses as the market develops.

It keeps investing simple

The IVV ETF also suits ASX investors who do not want to spend their spare time reading annual reports and comparing individual companies.

Buying individual shares can be rewarding, but it requires research and comes with the possibility of getting a company-specific decision badly wrong.

With the IVV ETF, one investment spreads money across hundreds of businesses.

That can make it easier to keep contributing through strong markets, weak markets, recessions, and whatever else happens over a long investing career.

For me, this simplicity is one of the fund’s biggest strengths.

A sensible investment strategy that someone can stick with for decades can be far more powerful than a clever strategy they abandon after a difficult year.

There are still risks

The IVV ETF is diversified across hundreds of companies, but it is not immune from large falls.

US shares can become expensive, recessions can hurt corporate earnings, and the index can experience lengthy periods of weak performance.

The largest US companies also account for a meaningful share of the S&P 500 index, so the fund can become quite concentrated at the top.

Australian investors also have currency exposure because the IVV ETF is not hedged back to the Australian dollar. Movements in the Australian dollar against the US dollar can therefore influence returns.

Nevertheless, I would be comfortable accepting those risks with a long enough timeframe.

Foolish takeaway

I think the IVV ETF offers one of the simplest ways for ASX investors to participate in the long-term growth of major global businesses.

There will inevitably be periods when US shares fall out of favour, and I would expect plenty of volatility over the years.

But if I wanted an investment I could keep adding to and potentially hold for decades, the IVV ETF would be high on my list.

The post Why I think the IVV ETF is a strong buy for ASX investors appeared first on The Motley Fool Australia.

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• 15% for 10 years: Is this ASX ETF a no-brainer buy?
• How much is needed in superannuation to target a $40,000 annual passive income?
• Is $2 million really the new superannuation target?

Bank of America is an advertising partner of Motley Fool Money. Motley Fool contributor Grace Alvino 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 Apple, International Business Machines, Merck, Microsoft, Nvidia, Walmart, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Verizon Communications. The Motley Fool Australia has recommended Apple, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Fortescue Ltd (ASX: FMG) remains one of Australia’s largest iron ore producers and a popular choice among resources investors.

But if I had $10,000 ready to invest today, I would be looking closely at what the next few years could bring rather than what the company has delivered in the past.

For now, I would keep my money on the sidelines.

The forecasts have moved the wrong way

Fortescue shares are trading around $17.99, which may initially look tempting after periods of weakness.

The problem for me is the earnings outlook. According to CommSec, consensus earnings per share forecasts have been trimmed this week and now stand at $1.34 in FY27, $1.21 in FY28, and $1.13 in FY29.

That implies earnings could fall by around 16% between FY27 and FY29.

I would be more comfortable buying a cyclical miner when the valuation gives me a greater margin for error or when I can see a stronger earnings outlook developing.

At $17.99, Fortescue trades on a PE ratio of roughly 13 times estimated FY27 earnings. By FY29, that rises to almost 16 times because analysts expect profits to decline.

For a business whose earnings remain heavily influenced by the iron ore price, I do not think that looks particularly compelling.

The dividend outlook is also weakening

Fortescue has historically attracted plenty of attention from income investors because it can distribute substantial amounts of cash when iron ore conditions are favourable.

Current forecasts suggest those payments could move lower over the next few years. Consensus estimates point to dividends per share of 85.8 cents in FY27, falling to 77.6 cents in FY28 and 70.7 cents in FY29.

That is still a meaningful amount of income, but I am more interested in the direction of travel.

If those forecasts prove accurate, both earnings and dividends would be declining at the same time.

That makes it harder for me to get excited about investing $10,000 today, particularly when there are other large miners competing for my money.

I still think Fortescue is a strong miner

My hesitation does not mean I think Fortescue is a poor business.

It has built an enormous iron ore operation in Western Australia and has spent years developing the infrastructure, mining expertise, and export network needed to move huge volumes efficiently.

That scale remains a major strength.

Iron ore demand and prices could also turn out stronger than analysts currently expect. If that happens, the earnings and dividend forecasts could eventually move higher again.

Fortescue is also investing beyond its traditional iron ore operations, although I would want to see those newer opportunities make a more substantial contribution before relying on them in my investment case.

For now, the core business remains closely tied to iron ore, and the consensus numbers suggest the next few years may be challenging.

Hold rather than buy

If I already owned Fortescue shares, I would not necessarily rush to sell them.

The company remains a major producer with valuable assets, and commodity markets can surprise in either direction.

But there is a difference between being willing to continue holding a good mining business and deciding that today is an attractive moment to put another $10,000 into it.

I would want either a cheaper entry point or signs that the earnings outlook is beginning to improve before becoming more positive.

Foolish takeaway

I would not invest $10,000 into Fortescue shares at around $17.99 today.

The company itself still has plenty going for it, but the current forecasts do not give me enough reason to buy. Earnings are expected to decline through FY29, dividends are forecast to follow them lower, and the shares would still be trading at almost 16 times FY29 earnings if those estimates prove accurate.

For me, Fortescue is closer to a hold than a buy right now. I would be happy to keep watching and reconsider if the price or earnings outlook becomes more attractive.

The post Should I invest $10,000 into Fortescue shares? appeared first on The Motley Fool Australia.

More reading

• Here’s the dividend forecast out to 2028 for Fortescue shares
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Motley Fool contributor Grace Alvino 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.

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.

More reading

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• Why I think the IVV ETF is a strong buy for ASX investors
• Should I invest $10,000 into Fortescue shares?
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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.