Tag: Stock pick

WiseTech Global Ltd (ASX: WTC) and Xero Ltd (ASX: XRO) are two of the ASX’s most popular technology shares.

Both operate globally, both have large markets still to pursue, and both could look considerably bigger in another five or 10 years.

So, would I be comfortable putting $5,000 into these two ASX tech shares today?

WiseTech Global shares

I think WiseTech could be worth a look after the sharp fall in its share price.

The company is best known for CargoWise, the software platform used by logistics companies to manage increasingly complicated global supply chains.

What I like about this business is how deeply its software can become embedded in a customer’s operations. Moving freight around the world involves customs, warehousing, transport, compliance, and plenty of other moving parts. Once a logistics company is managing those processes through CargoWise, changing systems can be a major undertaking.

WiseTech also has plenty of room to keep expanding what customers do through the platform.

The e2open acquisition has significantly increased the size of the business and gives WiseTech more technology and customer relationships to work with. Successfully bringing everything together could create new opportunities across the global supply chain.

There is certainly uncertainty here. WiseTech still needs to integrate e2open effectively, while investors will want to see that its expected earnings growth actually arrives.

But I think the lower share price leaves plenty of upside if management delivers.

Xero shares

Xero offers a different type of technology opportunity.

Its accounting platform is used by millions of small businesses, accountants, and bookkeepers around the world.

The good news is I think the company still has a long way to grow. There are tens of millions of small businesses across markets such as the United States alone, while Xero had around 4.9 million subscribers globally at the end of FY26.

But it isn’t just about subscriber numbers. Xero can generate more revenue from each business by offering more services around accounting, payroll, payments, and other financial tasks. Its acquisition of Melio should also strengthen its position in payments and help Xero play a bigger role in how small businesses manage their money.

I also think artificial intelligence (AI) could make the platform more valuable over time by automating more of the repetitive work involved in running a small business.

Xero still has to execute well, particularly in the highly competitive US market, but I think the size of the opportunity makes it worth backing.

Would I invest $5,000?

Yes, I would be comfortable putting $5,000 into WiseTech and Xero shares.

WiseTech offers the possibility of a strong recovery if earnings grow as expected and confidence returns, while Xero gives me exposure to a business that is still expanding through a huge global small business market.

The post Should I invest $5,000 into WiseTech and Xero shares? appeared first on The Motley Fool Australia.

More reading

• How to build a $50,000 passive income from ASX shares
• WiseTech shares need more than a rebound. 3 things it must prove first
• WiseTech shares: 3 reasons to buy and 3 reasons to sell
• Could the WiseTech share price reach $50 in 2027?
• Do these ASX technology shares have too much upside to ignore?

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 WiseTech Global and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Hub24 Ltd (ASX: HUB) shares are firmly in the line of fire. The ASX financial stock slipped another 1% on Wednesday to $69.31, extending a rough run that’s seen it fall 9% over the past month, 28% year to date, and a brutal 35% over the past 12 months.

For a stock once treated as an ASX tech darling, that’s a stunning reversal. So what’s actually driving the sell-off?

The real issue: flows are slowing

Here’s the crux of it. Investors are growing nervous about slowing net flows. In FY26, net inflows fell 4% year-on-year to $18.9 billion. That might not sound like a disaster, but for a stock priced for extremely high growth, any hint of deceleration is enough to trigger a serious re-rating.

The market’s question is simple but brutal: can Hub24 keep growing at the pace investors have paid up for? When a stock trades on lofty multiples built around rapid expansion, like Hub24 shares, even a modest slowdown can wipe out a huge chunk of the share price. And that’s exactly what’s playing out here.

Add in a broader wobble across the tech sector with investors reassessing valuations and grappling with how AI could reshape competitive dynamics, and growth stocks like Hub24 have been caught in the crossfire.

Markets tend to sell first and ask questions later, and even high-quality names can get dragged down in a broad de-rating cycle.

The numbers tell a different story

Strip away the flow concerns, and Hub24’s operational performance still looks genuinely strong. FY2026 delivered record results: group underlying EBITDA rose 30% to $211.4 million, underlying NPAT climbed 40% to $137.3 million, and total revenue grew 23% to $501.1 million.

This ASX tech stock continues to benefit from structural growth as more financial advisers adopt its platform. More than 5,200 advisers now use Hub24. One industry trend in particular is working in its favour: “platform monogamy,” where advisers consolidate client assets onto a single provider instead of spreading them across multiple systems.

That shift could help offset some of the flow slowdown as advisers prioritise efficiency, integration and scale.

A hidden growth engine

There’s also a less obvious driver worth watching: operating leverage. Platform businesses like Hub24 often see this play out strongly — once fixed costs are covered, additional funds flowing onto the platform can generate higher incremental margins.

That means earnings growth can outpace revenue growth over time, even if net inflows moderate from their previous blistering pace.

Brokers aren’t buying the pessimism

Analysts, for their part, seem largely unfazed. According to TradingView data, 14 of 18 brokers currently rate Hub24 a buy or strong buy. The average price target sits at $97.81, implying roughly 41% upside from current levels.

The most bullish target stands at $126, while the lowest sits at $71.40, still above today’s price. Citi has a buy rating with a $93.50 target, and RBC Capital sits at $91.00, pointing to roughly 30% upside.

The post Hub24 shares have crashed 35%. What’s actually going on? appeared first on The Motley Fool Australia.

More reading

• Hub24 shares have fallen 27% in 2026. Could they really rebound 38%?
• Netwealth Group vs HUB24: Which financial platform is better from an investor’s perspective?
• 3 ASX shares I think could return 10%+
• 3 ASX 200 shares I’d buy if I couldn’t sell for 10 years
• 4 high conviction ASX stock picks from Canaccord Genuity

Motley Fool contributor Marc Van Dinther 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 Hub24. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Woodside Group Ltd (ASX: WDS) shares have tumbled into the red today while AMP Ltd (ASX: AMP) and Wesfarmers Ltd (ASX: WES) climb higher.

Lets find out which of the three major ASX 200 shares brokers rate a buy, a sell and a hold.

Brokers rate AMP shares a BUY

AMP shares are up around 2% to $2.57 at the time of writing on Wednesday morning. The financial services company’s shares are now up around 42% for the year-to-date.

The shares have climbed higher recently off the back of its strong first-half FY26 result in early-August. It looks like investors were pleased with the company’s 33% increase in underlying NPAT to $174 million. 

The result came within AMP’s boosted profit guidance of $170 million to $180 million and is hugely higher than the $131 million reported in the first half of FY25.

Brokers are pleased with the result too. According to TradingView data the majority have a buy/strong buy rating on AMP shares. But after today’s rally, the $2.57 target price implies around a 2% downside at the time of writing.

Brokers rate Woodside shares a HOLD

Woodside shares have dropped lower this morning, down around 1.5% to $31.22 per share. Despite today’s dip the ASX energy company is still trading around 32% higher than 12 months ago.

The company is likely tracking fluctuations in the price of oil over the past week. On the 15th of September the price of oil spiked to a four-month high of around US$106 per barrel. The price has slipped below $90 per barrel on Wednesday as signs of a potential peace agreement between the US and Iran look positive once again.

The experts are quite divided, however, about where the share price will travel to next. TradingView data shows the majority (eight out of 17) have a hold rating on Woodside shares, six have a buy/strong buy rating and three rate the oil and gas stock as a sell.

The average $33.25 target price implies a potential 6% upside, at the time of writing.

Brokers rate Wesfarmers shares as a SELL

Wesfarmers shares are climbing higher into the green this morning, up around 1% to $73.80 each at the time of writing. It’s been a difficult year of peaks and troughs for the conglomerate, though, and its shares are still around 10% lower for the year-to-date.

The shares have faced several headwinds this year, including inflation and interest rate pressures which have put broad pressure on consumer discretionary and retail stocks. There is also a question about how the business can continue growing in a weakening market.

Analysts have lost confidence too. TradingView data shows half (either out of 16) have a strong sell rating on Wesfarmers shares. The other eight experts are split between a sell and a buy/strong buy rating.

But after the latest share price decline, the average $76.59 target price implies a potential 4% upside ahead, at the time of writing.

The post Buy, sell, hold: AMP, Wesfarmers, Woodside shares appeared first on The Motley Fool Australia.

More reading

• Where to invest as interest rates charge higher
• How much is needed in superannuation to target a $95,000 annual passive income?
• How to build a $50,000 passive income from ASX shares
• How much passive income can I earn off an $800,000 superannuation balance?
• Woodside vs Ampol: Which ASX energy stock should you buy?

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

Artificial intelligence (AI) is creating opportunities well beyond companies like OpenAI that are developing generative AI models.

These are two ASX shares I would buy for AI exposure.

NEXTDC Ltd (ASX: NXT)

NEXTDC is one of my preferred ways to gain exposure to the physical infrastructure needed for AI.

The company operates data centres across Australia and other parts of the Asia-Pacific region.

AI workloads require enormous amounts of computing power, but that also means they require electricity, cooling, and specialist facilities capable of housing increasingly powerful hardware.

That is where NEXTDC comes in. What I like is that the company is not simply building data centres and hoping customers eventually arrive.

The ASX artificial intelligence share has accumulated a substantial amount of contracted capacity and a large forward order book. To me, that provides evidence that customers are already committing to future infrastructure.

If AI continues driving demand for computing capacity, NEXTDC could have years of expansion ahead as it develops new facilities and brings contracted capacity online.

The main risk is the amount of capital required to fund that growth. Data centres are expensive to build, and projects can face delays around power, construction, and approvals.

Even so, I think NEXTDC is well placed to benefit as demand for digital infrastructure keeps growing.

Megaport Ltd (ASX: MP1)

Megaport is an ASX tech share that provides investors with a different type of artificial intelligence exposure.

Rather than owning the data centres themselves, Megaport helps businesses connect data centres, cloud providers, and other digital infrastructure through its software-defined network.

I think that becomes increasingly valuable as computing becomes more complex.

A business running AI workloads may use infrastructure across several locations and cloud platforms rather than keeping everything in one place. Those systems need fast and flexible connections between them.

Megaport allows customers to set up that connectivity without relying entirely on traditional physical network arrangements.

That gives the company an opportunity to benefit as businesses use more cloud infrastructure and move larger amounts of data between different locations.

I also like that Megaport can expand without needing to fund the same level of physical infrastructure as a data centre operator.

There will still be competition, and the company needs to keep growing customers and usage.

But I think greater demand for cloud and AI connectivity gives Megaport an attractive long-term opportunity.

Foolish takeaway

I think NEXTDC and Megaport offer two different ways to invest in the infrastructure supporting AI.

NEXTDC provides the physical space, power, and cooling needed for computing capacity, while Megaport helps connect that infrastructure together.

For me, both ASX shares could have plenty of growth ahead if artificial intelligence investment continues expanding over the coming years.

The post 2 of the best ASX artificial intelligence shares to buy appeared first on The Motley Fool Australia.

More reading

• Morgans tips 3 ASX 200 companies to rise between 35% and 106%
• What does Anthropic’s $32b Queensland data centre mean for ASX AI shares?
• 2 ASX shares tipped to surge 70% or more in the next 12 months
• Goodman Group vs Nextdc: Which stock is the better buy today?
• Top brokers name 3 ASX shares to buy next week

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 Megaport. 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.

It has been another fairly quiet session for Bank of Queensland Ltd (ASX: BOQ) shares on Wednesday.

The bank’s share price is down 1.28% to $6.575 in midday trade, continuing its somewhat lacklustre performance over the past year.

Back on 9 June, BOQ shares fell to a 52-week low of $5.91. They’ve since recovered around 11%, although the stock remains well below its 52-week high of $7.48.

But with shares still well below their highs, are they worth buying today?

The dividend looks pretty attractive

One thing likely drawing interest from income investors is BOQ’s dividend yield.

The bank paid 55 cents per share in fully franked dividends over the past 12 months.

At today’s share price, that translates to a trailing yield of approximately 8.37%.

However, there’s something worth keeping in mind.

That figure includes the 15-cent special dividend paid in August. Excluding this one-off payment, the ordinary dividends total 40 cents, giving a yield closer to 6.1%.

Still, that’s a decent return for shareholders.

The bank also announced a $295 million capital return last month. This consists of the special dividend and an on-market share buyback of up to $196 million.

But what about the underlying business?

This is where I’d be paying closer attention.

BOQ’s half-year results showed cash earnings fell 4% to $176 million, while statutory net profit dropped 20% to $136 million.

Operating expenses also increased 6% to $553 million.

There were some positives, though.

Its net interest margin (NIM) improved to 1.67%, compared with 1.57% a year earlier, while commercial lending balances increased 16%. 

More recently, BOQ completed the migration of approximately 350,000 ME customers onto its digital banking platform.

However, the bank also flagged a $47 million pre-tax impairment charge relating to technology and other assets, which will affect its FY26 statutory results. 

Are BOQ shares good value?

Analysts appear fairly divided on where BOQ shares could be heading next.

TipRanks puts the average 12-month price target from 8 analysts at $6.20, suggesting around 5.7% downside from today’s price.

Morningstar, on the other hand, has a fair value estimate of $7.305, suggesting approximately 11% upside. However, it also rates its valuation as highly uncertain.

Personally, I can see the appeal of the dividend, but I’m not convinced BOQ is an obvious bargain at $6.58.

I’d like to see more improvement in earnings before considering buying shares.

BOQ is scheduled to release its FY26 results on 15 October, which should give us a better idea of how the turnaround is progressing.

The post Bank of Queensland shares hit a 52-week low in June. Are they cheap today? appeared first on The Motley Fool Australia.

More reading

• Starting with $20,000, how to build a portfolio generating $5,000 a year in passive income
• How much superannuation do I need to earn $70,000 per year in passive income?
• How much superannuation do I need to earn $80,000 per year in passive income?
• How much passive income can I earn off a $750,000 superannuation balance?
• ASX 200 bank shares led a financial sector rebound last week

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.

The S&P/ASX 200 Index (ASX: XJO) has gained 24.3% since 22 September 2023, but Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) shares have left those gains wanting.

So, just how much would a $10,000 investment in both of the ASX 200 gold stocks three years ago be worth today?

Read on!

Buying $10,000 worth of Northern Star shares

On 22 September 2023, gold was trading for US$1,925 per ounce, according to data from Bloomberg.

Today, that same ounce is trading for US$4,360, which puts the yellow metal up 126.5%.

As for Northern Star, three years ago you could have bought the ASX 200 gold miner for $10.92 a share. Meaning you could have picked up 915 Northern Star shares for $10,000.

In intraday trade on Wednesday, shares are changing hands $22.84 each. So, those 915 shares would be worth $20,899 today.

But let’s not forget those Northern Star dividends.

If you’d owned the stock for the past three years you would have received (or shortly will) the past six dividend payouts, totalling $1.50 a share. The first three were unfranked while the most recent three were franked at 100%. Northern Star stock traded ex-dividend on 9 September. If you held the stock at market close on 8 September you can expect to get paid on 15 October.

Now, if we add those dividends back in to today’s share price, then the accumulated value of the Northern Star shares you bought in September 2023 is worth $24.34 today. And those 915 shares are worth an accumulated $22,271.

Or a gain of 122.7%.

Which brings us to…

Investing $10,000 in Evolution Mining shares

On 22 September 2023, Evolution Mining shares closed the day trading for $3.58.

Your $10,000 investment, then, would have netted you 2,793 shares in this ASX 200 gold stock.

At the time of writing today, those same shares are changing hands for $13.97 each, meaning you could sell the whole lot now for $39,018.

But again, let’s not forget those dividends.

Having bought the gold miner three years ago, you would have received (or shortly will) the past six fully franked Evolution Mining dividends, totalling 68 cents a share. Evolution Mining stock traded ex-dividend on 9 September. If you held the stock at market close on 8 September, you can expect to see that record high 21 cent per share passive income payout land in your bank account on 2 October.

If we add those dividends back in to today’s share price, then the accumulated value of the Evolution Mining shares purchased three years ago is worth $14.65 now. And those 2,793 shares are worth an accumulated $40,917.

That’s a gain of 309.2%, which sees Evolution Mining clearly beating out Northern Star shares as the better investment over the past three years.

The post $10,000 invested in Evolution Mining and Northern Star shares 3 years ago is now worth… appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday
• Newmont vs Northern Star: Which gold share is better for value and yield?
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Bernd Struben 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.

Tesoro Gold Ltd (ASX: TSO) shares have been pretty much flat over the past year, but the team at Morgans believes some recent news could be the catalyst for a significant rerating.

Maiden gold reserve bolsters confidence

The company has in the past few days reported a maiden gold reserve at its Ternera deposit in Chile, with the project containing 1.28 million ounces of gold.

The reserve lies within a planned single open pit and represents 87% of the overall 1.47 million ounce gold resource at the project.

Tesoro said further:

The Ore Reserve supports a substantial, long-life development at the planned 3.0Mtpa process rate. The Reserve pit was designed based on a US$3,000/oz gold price optimal pit shell. It is underpinned by Pre-Feasibility (PFS) mine designs and schedules and the application of Modifying Factors informed by work completed across mining, geotechnical, metallurgy, processing, infrastructure, environmental and cost workstreams.

The company will now progress to a definitive feasibility study for the deposit, and will, “evaluate further opportunities to optimise the Project as the technical and development workstreams are refined”.

Tesoro said the gold reserve supports a project production life of more than 13 years.

The company said the project was close to road, power and water infrastructure and just 57km by road to the port of Caldera.

Further growth potential was also being tested through an ongoing drilling program.

Tesoro Managing Director Zeff Reeves said:

The Ternera Gold Deposit represents a rare, single open pit development opportunity in a world class mining friendly country. Establishing this initial 1.28Moz Ore Reserve is a significant step for our El Zorro Gold Project. We now have a substantial Ore Reserve contained entirely within a single open pit which supports more than 13 years of production at the planned 3.0Mtpa processing rate. This gives us a strong development base at Ternera, which still has significant upside to be unlocked from further drilling.

ASX gold shares looking cheap

Morgans said in a note to clients that the maiden reserve further reinforced their view that the project was technically robust and financeable.

They said:

The Ternera deposit supports a simple open-pit development scenario, with a single pit-constrained mining inventory and favourable geometry resulting in a moderate life of mine strip ratio of 6.3:1. We believe the combination of strong project economics, low technical complexity and favourable mining conditions should support development financing and enhance corporate appeal.

Morgans said they saw multiple catalysts over the next 12 months which could further derisk the project.

They have a price target of $2.64 on the company compared to 87.5 cents currently. Tesoro Gold is valued at $157.3 million.

The post This ASX gold stock could jump more than 200%: Broker appeared first on The Motley Fool Australia.

More reading

• Where to invest as interest rates charge higher
• Should I invest $5,000 into WiseTech and Xero shares?
• Hub24 shares have crashed 35%. What’s actually going on?
• Buy, sell, hold: AMP, Wesfarmers, Woodside shares
• 2 of the best ASX artificial intelligence shares to buy

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.

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.

More reading

• Morgans tips both of these ASX shares to rise 31%
• Bell Potter says this ASX 200 stock is a buy
• 5 things to watch on the ASX 200 on Thursday

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.

More reading

• Should I buy CBA shares before the end of September?
• Why I’d invest $50,000 of superannuation into these 3 top ASX ETFs
• Soul Patts vs BHP: Which ASX share is best for beginners?
• 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?

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.