S&P/ASX 200 Index (ASX: XJO) shares are up 1.09% at 8,567.2 points amid news of the Iran-Israel ceasefire on Tuesday.
Meanwhile, Tony Locantro of Alto Capital has put a sell rating on two ASX 200 shares that he thinks have become expensive.
Let's take a look.
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Expert slaps sell ratings on 2 ASX 200 shares
JB Hi Fi Ltd (ASX: JBH)
Courtesy of The Bull, Locantro says taking some profits "may be prudent" on JB Hi-Fi shares.
He points out that the JB Hi-Fi share price has ripped from $86 per share on 7 April to $109.95 at the time of writing.
The analyst says the consumer electronics giant has performed well during the cost-of-living crisis.
Locantro comments:
JB Hi-Fi's Australian operations grew total sales by 6.5% in the third quarter of fiscal year 2025.
Total JB Hi-Fi sales in New Zealand soared by 17.5%.
It's an enviable performance given Australia's cost of living crisis that's about to be exacerbated by increasing power prices.
JB Hi-Fi shares hit an all-time high of $112.98 on 4 June.
Locantro says the ASX 200 consumer discretionary share is now expensive.
The stock is trading on a lofty price/earnings ratio, in our view.
The shares are expensive, so taking some profits may be prudent in this economy.
JB Hi-Fi shares are trading at a P/E of 25x today.
Commonwealth Bank of Australia (ASX: CBA)
Locantro also has a sell rating on CBA shares.
The CBA share price has been on a tear since the ASX bank stock run began in November 2023.
CBA shares are 81% higher today than they were just 20 months ago.
The CBA share price reset its record high in earlier trading at $188.36.
Whilst Locantro regards CBA as an "ASX success story", he points out that their P/E is vastly higher than other ASX 200 bank shares.
The bank was recently trading on a price/earnings ratio above 31 times.
Relative to its peers, the CBA is expensive.
Westpac Banking Corp (ASX: WBC) was recently trading on a price/earnings ratio of about 16 times and ANZ Group Holdings Ltd (ASX: ANZ) was on 13 times.
In our view, this bank is priced to perfection and is exposed to a correction if economic growth slows.
Investors may want to lock in some profits at these levels.
