Why Bapcor, Cleanaway, Sunrise, and Zip shares are falling today

These shares are out of form on Tuesday. But why?

| More on:
Three guys in shirts and ties give the thumbs down.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Bapcor and Cleanaway see share price declines following trading updates that forecast challenges but reaffirm longer-term targets.
  • Sunrise Energy Metals' shares fall despite positive resource update, as investors anticipated stronger results.
  • Zip Co experiences a dip possibly due to profit-taking after significant year-to-date gains, though analysts remain optimistic about its future.

The S&P/ASX 200 Index (ASX: XJO) is having a good session on Tuesday. In afternoon trade, the benchmark index is up 0.6% to 9,087.5 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

Bapcor Ltd (ASX: BAP)

The Bapcor share price is down 4% to $2.50. Investors have been selling this auto parts retailer's shares this week following the release of a trading update. Bapcor announced that it expects its first half underlying profit to be in the range of $14 million to $18 million. This is down sharply from $45.5 million in the prior corresponding period. And while a stronger second half is expected, with management guiding to full year statutory profit in the range of $40 million to $50 million, investors appear cautious. In response to its update, this morning Morgans retained its hold rating with a heavily reduced price target of $2.75 (from $3.90).

Cleanaway Waste Management Ltd (ASX: CWY)

The Cleanaway Waste Management share price is down over 4% to $2.66. This follows the release of a trading update ahead of the waste management company's annual general meeting. Management advised that the first quarter was tough due to subdued trading conditions. And while it has reaffirmed its FY 2026 underlying EBIT guidance of $470 million to $500 million, it warned that its earnings will be weighted more heavily to the second half than normal. Cleanaway's CEO, Mark Schubert, said: "While trading conditions in the September quarter were subdued, we know what needs to be done and are confident in our ability to deliver our FY26 earnings guidance."

Sunrise Energy Metals Ltd (ASX: SRL)

The Sunrise Energy Metals share price is down 7% to $5.50. Investors have been selling this scandium developer's shares following the release of a mineral resource update for the Syerston Scandium Project. Management revealed that its ore reserve estimate has increased by 87% and underpins a 30+ year asset life. While this appears positive, it seems that investors were expecting an even stronger update.

Zip Co Ltd (ASX: ZIP)

The Zip share price is down 6% to $4.34. This may have been driven by profit taking from investors after strong gains were recorded year to date. For example, even after today's pull back, the buy now pay later provider's shares are still up 47% since the start of the year. Though, it is worth noting that analysts at UBS believe Zip's shares can keep rising. This morning, the broker retained its buy rating on its shares with an improved price target of $5.40.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

Girl with painted hands.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX shares went backwards again this Thursday.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Share Market News

Orica shares have soared 40% this year on record profit. Can they keep going?

Expectations are high, but this growth story could still have legs.

Read more »

Man looking happy and excited as he looks at his mobile phone.
Share Gainers

Why Breville, Flight Centre, Navigator Global, and Regis Resources shares are racing higher

These shares are avoiding the market weakness on Thursday.

Read more »

A woman's hand draws a stylised 'Top Ten' on a projected surface.
Share Gainers

Here are the top 10 ASX 200 shares today

It wasn't a happy Wednesday for investors.

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Share Gainers

Why Breville, Flight Centre, Mineral Resources, and Strickland shares are shooting higher

These shares are having a good session on hump day. But why?

Read more »

A neon sign says 'Top Ten'.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX was back to selling mode this Tuesday.

Read more »

Person pointing at an increasing blue graph which represents a rising share price.
Share Gainers

Why Aeris, Capricorn Metals, Northern Star, and Rox shares are rallying higher

These shares are performing better than most on Tuesday.

Read more »

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a spectacular start to the trading week.

Read more »