Knowing which ASX shares to avoid can be just as important as knowing which ones to buy when you are aiming to maximise portfolio returns.
So, with that in mind, let's see which shares analysts are tipping as sells this week, courtesy of The Bull.
Here's what they are bearish on:
A2 Milk Company Ltd (ASX: A2M)
The team at Dolphin Partners Financial Services has named this infant formula company's shares as a sell this week.
The financial services firm highlights that A2 Milk has a tough outlook following weakness in China and a product recall in the United States. As a result, it sees better opportunities elsewhere in the market. It said:
This infant milk formula company recently initiated a voluntary recall of three small batches of product sold in the United States. The company announced the recall was isolated to the US label product. The shares have remained under pressure since April when the company downgraded guidance in full year 2026.
It expects lower infant milk formula sales, mostly related to Chinese labels. The EBITDA percentage margin is forecast to decline from previous guidance of between 15.5 per cent to 16 per cent to between 14 per cent to 14.5 per cent. Other stocks offer more appealing outlooks. The shares have fallen from $9.24 on April 10 to trade at $6.45 on May 13.
Endeavour Group Ltd (ASX: EDV)
Dolphin Partners Financial Services has also named this drinks giant's shares as a sell this week.
It highlights that the Dan Murphy's owner is operating in a challenging economic environment and facing increased competition.
In light of this, the financial services firm thinks investors should focus on other ASX shares. It explains:
Endeavour operates liquor outlets, hotels and gaming facilities. While Endeavour is a leader in the liquor retailing space, the business is operating in a challenging economic environment involving fierce competition, continuing margin pressure and macroeconomic shocks. Many analysts have cut forecasts to reflect softer trends.
Increasing fuel costs in response to the Middle East conflict is imposing pricing pressure throughout its supply chain. Increasing cost of living pressures is another challenge. The shares have fallen from $4.04 on March 2 to trade at $3.23 on May 13. Other stocks appeal more in this economic climate of higher interest rates and cash strapped consumers.
Temple & Webster Group Ltd (ASX: TPW)
Over at DP Wealth Advisory, it has named this online furniture retailer's shares as a sell this week.
It thinks that the higher oil prices and interest rates are likely to weigh on discretionary spending. It said:
TPW is an online furniture and homewares retailer. The share price remains under significant pressure in response to weaker discretionary spending from the oil price shock and rising interest rates in Australia. The stock has also been subjected to short selling by investors betting the shares will fall. Our recommendation is based on a weaker macroeconomic outlook.
At this point, we can't see any clear and meaningful differentiation between TPW and bricks and mortar retailers or online competitors operating in the same or similar sectors.
The post Why experts are selling these 3 ASX shares this week appeared first on The Motley Fool Australia.
Motley Fool contributor James Mickleboro has positions in Endeavour Group and Temple & Webster Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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