It hasn’t been a great start to Wednesday’s session for Nufarm Ltd (ASX: NUF) shareholders.

The agricultural chemicals company’s share price has fallen 8.44% to $2.93 in late morning trade following an update on its FY26 performance.

The stock has traded as low as $2.90 today, compared with Tuesday’s closing price of $3.20.

Interestingly, the selling comes despite Nufarm forecasting strong earnings growth and an improvement in its balance sheet.

So, what exactly did the company announce today?

Earnings are heading higher

According to the release, Nufarm expects FY26 underlying EBITDA to come in between $370 million and $380 million.

At the midpoint, that’s around 25% higher than last year, which is a pretty decent result considering the challenges facing the business.

Much of that growth should come from its Seed Technologies division, with Hybrid Seeds and Omega-3 both performing well.

Crop Protection hasn’t had quite the same run, with earnings expected to be broadly flat compared with last year.

The company said it has been dealing with currency headwinds, manufacturing disruptions and softer conditions in North America, which haven’t helped.

But there was some good news on the balance sheet.

Nufarm expects leverage to fall to around 2x by 30 September, compared with 2.7x a year ago.

So, why are the shares falling?

Well, there is one figure in today’s announcement that can help explain the selling.

Nufarm expects to recognise between $90 million and $110 million in material items after tax during FY26.

These costs are primarily non-cash and relate to the company’s ongoing restructuring and strategy changes.

They include costs associated with the planned closure of its manufacturing facilities in Kwinana, Western Australia, and Alsip in the United States.

While these charges won’t affect underlying EBITDA, they will still weigh on Nufarm’s reported statutory profit.

And this isn’t the first year shareholders have had to deal with restructuring costs.

In FY25, the company reported a statutory net loss of $165.3 million, which included $142.4 million in predominantly non-cash material items.

What’s next for Nufarm shares?

Looking ahead, Nufarm is sticking with its plan to simplify the business and bring costs down.

The company is targeting $50 million in annual cost savings by the end of FY27, with several initiatives already underway.

Management will be hoping these changes help improve profitability over the next couple of years, especially given the costs involved in restructuring the business.

The next big date for shareholders to pencil in is 19 November, when Nufarm is due to release its full FY26 results.

The post Why is this ASX share crashing 8% on Wednesday? 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 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.

Money keeps pouring into two of the ASX’s most popular Vanguard exchange-traded funds (ETFs), and it’s not hard to see why. The Vanguard Australian Shares Index ETF (ASX: VAS) and Vanguard MSCI International Shares ETF (ASX: VGS) now collectively oversee roughly $40 billion in funds under management.

For a huge number of Australian investors, this pair effectively is the foundation of their portfolio. If I were starting from scratch, these two ETFs are exactly where I’d begin.

Building an investment portfolio from nothing can feel overwhelming. There are thousands of shares to sort through, endless opinions, and constant market noise pulling investors in every direction.

For beginners, ASX ETFs cut through all of that. Buy one fund, and you instantly own a slice of dozens, or hundreds of companies, without having to bet everything on picking the next big winner yourself.

VAS: owning corporate Australia in one trade

This top Vanguard ETF gives investors exposure to the 300 largest companies listed on the ASX. It’s a simple, one-click way to own a piece of corporate Australia.

Recent performance hasn’t been flashy. The fund is down around 3% over the past month and roughly 0.5% over 12 months. But chasing short-term returns misses the point of an ETF like this entirely.

What VAS really offers is broad exposure across Australian industries, paired with a genuinely attractive income stream. Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP) sit among its largest holdings, each making up more than 10% of the fund.

The dividend yield currently sits around 3.8%. That is solid, but it’s worth remembering that Australian equities lean heavily on financials and resources. Buy VAS, and you’re making a concentrated bet on those two sectors whether you realise it or not.

VGS: the antidote to a home-country-only portfolio

This is where the second largest Vanguard ETF earns its place. It directly tackles the biggest weakness of an Australia-only portfolio: concentration.

VGS provides exposure to developed international markets and has returned around 8% over the past year. it spreads investors’ money across hundreds of companies well beyond the ASX. The US dominates the portfolio, with tech giants like Apple inc (NASDAQ: AAPL) and Nvidia Corp (NASDAQ: NVDA) each representing more than 5% of the fund at the time of writing.

That global reach matters. It reduces reliance on Australia’s relatively small, concentrated share market, and opens the door to industries and business models that barely exist on the ASX at all. Think large-scale semiconductor manufacturers, global software platforms and consumer tech giants.

None of that makes VGS risk-free, though. International markets can correct sharply and geopolitical shocks can hit hard. Currency swings in the Australian dollar can also chip away at returns for local investors.

The post The Vanguard ETFs I’d buy first if I were starting again appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple and Nvidia. The Motley Fool Australia has recommended Apple, BHP Group, Nvidia, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Commonwealth Bank of Australia (ASX: CBA) shares crashed lower in August, and the declines have continued through most of September so far.

At the time of writing, the ASX bank stock is down around 0.2% to $153.13 a piece. Today’s decline means the shares are down around 5% for September so far and 6% for the year to date.

For context, the S&P/ASX 200 Index (ASX: XJO) is up around 0.3% in Wednesday morning trade. This index is down around 3% for September so far and roughly 0.5% higher for the year to date.

Now the question is, should I buy CBA shares in the dip? 

Could the shares rebound next month or is there more downside to come?

What has happened to CBA shares in September?

After a difficult August, CBA shares started trending higher in the first week of September, but then the tumble resumed. 

The banking giant has faced several persistent headwinds this month, including a cooling property market and renewed forecasts for more interest rate increases.

The Reserve Bank of Australia (RBA) is now widely expected to hike interest rates next week on the 29th of August. All four of Australia’s major banks, including CBA, are forecasting a 25-basis-point increase when the board meets next week.

The change in sentiment is driven by rising oil prices amid escalating conflict in the Middle East, a stubbornly high inflation rate, and a tight jobs market.

RBA governor Michele Bullock recently warned that Australia’s jobs market was still putting upwards pressure on wages, business costs, and inflation. She said that unemployment may need to rise to tame inflation, adding that an unemployment rate of 4.5% to 5% could help ease inflation pressure.

And all this is happening against a backdrop of a highly competitive mortgage market. CBA often has to cut mortgage prices and squeeze its net interest margins to remain competitive. And this eats into the bank’s profits.

Should I buy CBA shares before the end of the month?

Brokers are pretty pessimistic about the outlook for CBA shares over the next 12 months. 

Market Index data shows that all brokers have a strong sell rating on the banking giant’s shares. The average $125.20 target price implies a potential 18% downside, at the time of writing.

TradingView data shows something very similar. Out of 16 analysts, 14 have a sell or strong sell rating on the shares. Another two rate the bank stock as a hold.

They all agree that a downside is ahead, however. The average $128.29 target price implies a potential 16% downside ahead. But some still think the share price could fall by up to 41%, to just $90 a share.

Shaw and Partners rates CBA shares as a sell and warns that, with a price-to-earnings (P/E) ratio of around 23.5, CBA is the highest of the big four ASX 200 bank stocks.

The broker added that Federal Government initiatives to increase housing supply and improve affordability are likely to intensify competition and place even more pressure on lending margins.

Medallion Financial Group also has a sell recommendation on CBA shares. The broker thinks that the bank’s valuation is stretched and that better valuation opportunities exist elsewhere.

With forecasts like this, I think there is a very good chance that CBA shares will fall further in October.

The post Should I buy CBA shares before the end of September? appeared first on The Motley Fool Australia.

More reading

• The Vanguard ETFs I’d buy first if I were starting again
• Why I’d invest $50,000 of superannuation into these 3 top ASX ETFs
• 2 ASX blue-chip shares that won’t be hit by $100 oil
• How much passive income can I earn off an $800,000 superannuation balance?
• Are the BHP and CBA share price headed for parity?

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 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.