Elders Ltd (ASX: ELD) and Brambles Ltd (ASX: BXB) shares have underperformed the S&P/ASX 200 Index (ASX: XJO) both year to date and over the past 12 months.
In afternoon trade on Thursday, Elders shares are up 1.1%, trading for $5.38 apiece.
Despite that uptick, shares in the ASX 200 agribusiness remain down 12.5% over the past 12 months and down 21% in 2026. Offering some solace to investors nursing those losses, Elders shares trade on a 6.7% fully-franked trailing dividend yield.
Brambles shares have had an even tougher year.
Up 2% today at $16.74 each, shares in the ASX 200 supply pallets and crates supplier are down 28% over 12 months and down 26.6% year to date. Brambles stock trades on a partly franked 3.9% trailing dividend yield.
To put this rather dismal performance in some perspective, the ASX 200 has gained 1.6% over the past year and is down 0.6% in 2026.
And looking ahead, Red Leaf Securities' John Athanasiou expects both stocks will continue to underperform over the coming months (courtesy of The Bull).
Here's why.
Time to sell Brambles shares?
"This supply chain logistics giant has moved from a premium defensive compounder to a more challenged operational story following recent earnings and sales revenue downgrades," Athanasiou said.
And rising costs are chief among those more challenging conditions.
According to Athanasiou:
Disruptions in its United States pallet pooling network have exposed execution issues, resulting in higher costs. While the CHEP business model remains structurally sound, short-term performance is weighed down by operational inefficiencies and inflationary pressures.
Summarising his sell recommendation on Brambles shares, Athanasiou concluded:
The downgrade cycle has shifted sentiment, with the market now questioning the sustainability of mid-term growth expectations. Until execution stabilises and margins recover, Brambles lacks the earnings momentum required to justify a premium multiple, leaving risk skewed to the downside, in our view. The shares have fallen from $22.10 on May 15 to trade at $16.34 on May 28.
Should I exit Elders shares today?
Atop recommending selling Brambles shares, Athanasiou also has a sell recommendation on Elders shares.
"The company's exposure to agriculture, livestock and rural services make it highly sensitive to seasonal and commodity-driven swings," he said.
And rising debt levels could pose further headwinds.
Athanasiou noted:
While expansion through acquisitions has supported scale, it has also increased leverage, which, in our view, reduces balance sheet flexibility. Without a clear cyclical upswing, the outlook remains challenging.
Then there's the impact of the Middle East conflict on energy and diesel prices.
According to Athanasiou:
Elders is exposed to elevated diesel prices, which remains a risk to the company's cost base. In our opinion, the stock offers limited defensive characteristics, making it more suitable as a sell than a hold at this stage of the cycle. The shares have fallen from $7.20 on May 15 to trade at $5.58 on May 28.
The post Sell alert! Why this expert is calling time on Elders and Brambles shares appeared first on The Motley Fool Australia.
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 recommended Elders. 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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