Knowing which ASX shares to avoid can be just as important as knowing which ones to buy.
After all, if you have too many underperformers in a portfolio, you could fall short of the market return.
With that in mind, let's look at three ASX shares analysts rate as sells, courtesy of The Bull. Here's what they are bearish on:
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Commonwealth Bank of Australia (ASX: CBA)
Morgans thinks that investors should be avoiding Australia's largest bank. While the broker acknowledges its quality and market dominance, it cannot look beyond its stretched valuation. It explains:
CBA is a high quality bank with strong market share, but its valuation is stretched relative to peers. It trades on a significantly higher price-to-earnings ratio compared to global counterparts. Slowing credit growth, margin compression and rising household financial stress poses a risk to earnings. With limited upside and a premium valuation, we believe it's prudent to lock in some gains and rotate into better value financials.
Lynas Rare Earths Ltd (ASX: LYC)
Over at Catapult Wealth, its analysts think that this rare earths producer's shares are overvalued after a very strong gain over the past six months.
In light of this, its analysts rate the ASX share as a sell at present. They said:
Lynas is the largest producer of rare earths outside of China. Concerns about the trade relationship between China and the United States has contributed to a strong increase in the Lynas share price. The shares have risen from $6.85 on April 2 to trade at $17.26 on October 2. The company recently raised $932 million from institutional investors and eligible shareholders. We believe the shares are overvalued. The only way we can see our fair value increasing to its current share price is through a takeover offer for Lynas, or Australia implementing a rare earths price floor. We can't envisage either of our options happening anytime soon.
Tabcorp Holdings Ltd (ASX: TAH)
Another ASX share that Catapult Wealth rates as a sell is gambling company Tabcorp.
It thinks investors should be looking to lock in recent share price gains and put the money to work elsewhere in the market. The broker explains:
Shares in this wagering company have risen from 71 cents on August 26 to trade at $1.015 on October 2. The share price rise follows a stronger full year 2025 result released on August 27. Group revenue of $2.614 billion was up 11.8 per cent on the prior corresponding period. Net profit after tax, before significant items, was $49.5 million, an increase of 76.8 per cent. Sustaining revenue and profit growth is a challenge, particularly given the stiff competition in the online wagering market. We would be inclined to take advantage of share price gains and re-allocate the funds to what we consider better value opportunities. Tabcorp's final 1 cent dividend was unfranked.
