Commonwealth Bank of Australia (ASX: CBA) shares are marching higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock closed yesterday trading for $172.42. At the time of writing, shares are swapping hands for $173.48 apiece, up 0.61%.
While that's down from the all-time closing highs of $191.40 a share, posted on 25 June, CBA shares remain up an impressive 30% since this time last year.
And that's not including the two fully franked dividends, totalling $4.75 a share, that CommBank paid eligible investors over the 12 months.
But on the heels of this strong run, Catapult Wealth's Dylan Evans believes now is an opportune time to take profits from Australia's biggest bank, which also counts as the biggest stock on the ASX (courtesy of The Bull).
Should I sell my CBA shares today?
"CBA has performed exceptionally well for investors," said Evans, who has a sell recommendation on CBA shares.
Evans noted:
The company posted an unaudited cash net profit after tax of $2.6 billion in the third quarter of fiscal year 2025, up 6% on the prior corresponding period. The share price has risen from $132.66 on July 18, 2024, to trade at $179.30 on July 17, 2025. The shares closed at $191.40 on June 25, 2025.
Despite that strength, Evans cited concerns about the growing premium CommBank stock trades on relative to its peers.
"CBA is unquestionably a quality business, but the valuation, in our view, still appears stretched," he said.
Evans added:
CBA now trades at more than twice the price/earnings ratio of competitor ANZ Group Holdings Ltd (ASX: ANZ). CBA was recently trading on a modest annual dividend yield of 2.67%. Other stocks offer better value, in our view, given CBA's lofty share price.
Indeed, CBA trades on a price-to-earnings (P/E) ratio of around 31 times. That compares to a P/E ratio of around 14 times for ANZ shares.
And as Evans points out, despite CBA upping both its interim and final dividends this past year, the stock's dividend yield has slipped amid the fast-rising share price, diminishing the appeal of CBA shares for passive income investors.
What are the consensus analyst expectations for CommBank stock?
Evans isn't alone in his sell recommendation. Consensus analyst recommendations on CommSec show no buy recommendations, with one hold, four moderate sell, and 10 strong sell recommendations.
Sage Capital portfolio manager Sean Fenton, whose fund took a hit from its prior short position on CBA shares, still believes Australia's biggest bank is due for a pullback (courtesy of The Australian Financial Review).
According to Fenton:
We see the share price of CBA as unsustainable in the long run given the lack of earnings growth… We're acutely aware there is a long list of other fund managers, and even super funds, waiting for a potential turning point.
