Why Coles, Netwealth, Pro Medicus, & Zip shares are sinking

Coles Group Ltd (ASX:COL) and Zip Co Ltd (ASX:Z1P) shares are two of four sinking notably lower today. Here’s why….

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In afternoon trade the S&P/ASX 200 Index (ASX: XJO) looks set to end its winning streak with a disappointing decline. At the time of writing, the benchmark index is down 0.65% to 6,873.2 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are sinking:

Coles Group Ltd (ASX: COL)

The Coles share price is down almost 6% to $17.15. This follows the release of its half year results this morning. Although Coles delivered a profit result ahead of expectations, investors appear concerned by management’s comments on its outlook. The supermarket giant’s CEO, Steven Cain, warned: “Depending on COVID-19, vaccine roll out and efficacy, and other factors, sales in the supermarket sector may moderate significantly or even decline in the second half of FY21 and into FY22.”

Netwealth Group Ltd (ASX: NWL)

The Netwealth share price is down 4.5% to $17.13. This is despite the investment platform provider delivering strong growth during the first half. For the six months ended 31 December, the company recorded a 30.1% increase in EBITDA to $40.5 million. This was driven by strong growth in Netwealth’s funds under administration over the last 12 months.

Pro Medicus Limited (ASX: PME)

The Pro Medicus share price is down 2.5% to $44.46. This is quite a turnaround for the health imaging company’s shares. At one stage, the Pro Medicus share price had fallen 17% following the release of its half year results. Investors may have been disappointed that its revenue and profits fell a touch short of expectations during the half.

Zip Co Ltd (ASX: Z1P)

The Zip share price has crashed 14% lower to $11.97. This appears to have been driven by profit taking after some incredible gains in recent weeks. As I mentioned here earlier, the Zip share price was up an incredible 143% in the space of just one month. Given these strong gains and the general weakness in the tech sector today, Zip’s decline isn’t overly surprising.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Pro Medicus Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Netwealth. The Motley Fool Australia has recommended Pro Medicus Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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