S&P/ASX 200 Index (ASX: XJO) shares are up 0.67% to 8,470.4 points on Tuesday.
Meanwhile, the experts say investors should sell these three constituents of the benchmark index.
Here's why.
Experts say these 3 ASX 200 shares are a sell
JB Hi-Fi Ltd (ASX: JBH)
JB Hi-Fi shares are trading at $109.85 apiece on Tuesday, up 1.79% for the day so far and up 88% over the past 12 months.
That big gain is precisely why Jabin Hallihan of Family Financial Solutions has a sell rating on the ASX 200 consumer retail share.
Hallihan told The Bull:
In our view, the company's valuation appears stretched and offers limited upside from these levels.
Given the stock's premium pricing, we suggest investors consider selling a parcel of JBH shares …
Hallihan said JB Hi-Fi's Australian sales rose by 6.5% and New Zealand sales jumped 17.5% in the third quarter of FY25.
The broker suggests investors take their recent capital gains and invest in Kogan.com Ltd (ASX: KGN) shares instead.
He notes that Kogan is "expanding market share at a more attractive valuation".
Kogan shares are steady at $3.95 apiece at the time of writing, down 9% over the past year.
REA Group Ltd (ASX: REA)
The REA share price is $242.94, up 1.1% on Tuesday and 32% over the past year.
REA Group operates Australia's biggest online property classifieds business.
Hallihan reckons this ASX 200 communications share is a sell, too.
He comments:
The stock looks overpriced.
We believe the valuation is stretched in a subdued residential property market.
We would recommend investors consider cashing in some gains to reduce risk.
Hallihan noted that REA generated revenue of $374 million in the third quarter of FY25, up 12% on the prior corresponding period (pcp).
Total revenue in the financial year to 31 March was $1.247 billion, up 18%.
Healius Group Ltd (ASX: HLS)
This ASX 200 healthcare share is trading at 87 cents, down 1.14% today and down 35% over the past 12 months.
Christopher Watt of Bell Potter has a sell rating on Healius shares.
He's concerned about the diagnostic pathology company's earnings targets.
Watt said:
After recently completing the sale of Lumas Imaging, HLS paid shareholders a special fully franked special dividend totalling about $300 million or 41.3 cents a share.
In our view, earnings before interest and tax targets in fiscal year 2027 imply overly ambitious cost-outs.
The return on capital in fiscal year 2026 is modest.
In our view, other companies offer better returns and brighter prospects moving forward.
