These 2 ASX shares surged to record highs this year: Expert says it's time to take profits

These ASX shares have screamed up the charts in 2025.

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Key points

  • Newmont Corporation shares have surged 125% this year, but experts recommend selling due to concerns over sustainable gold price levels and mixed quarterly results.
  • Coles Group shares, up 18% this year, face a sell recommendation due to lack of clear catalysts for continued growth amidst persistent economic challenges.
  • Analysts suggest taking profits from these ASX shares given potential risks and recent high valuations.

S&P/ASX 200 Index (ASX: XJO) shares are up 0.15% to 8,849.4 points on Tuesday.

On The Bull this week, market experts are calling time on two ASX shares that have had incredible price runs this year.

Let's take a look.

2 ASX shares now at sell status: experts

Newmont Corporation CDI (ASX: NEM)

The Newmont share price is $135.80, up 3.78% on Tuesday and up 125% in the year to date.

The market's third biggest gold miner hit a record $152.72 last month, representing a year-to-date gain of 156%.

Like most ASX gold stocks, Newmont has surged amid the extraordinary multi-year gold price boom.

Toby Grimm from Baker Young thinks it's time to take profits on Newmont shares.

Grimm said:

As much as the underlying drivers of record gold prices remain intact, including inflation, low interest rates and high levels of geopolitical tension, we view the recent spike as unsustainable in the longer term.

Grimm is referring to the gold price rapidly rising from US$4,000 per ounce to a record US$4,300 per ounce in less than a fortnight last month.

On top of that, Grimm noted mixed results in Newmont's latest quarterly update.

These two factors have led him to put a sell rating on the ASX gold share.

Grim explains:

We would be locking in part profits on gold producer Newmont following a recent mixed quarterly update.

It delivered marginally better than predicted production, but also warned of higher than anticipated capital expenditure requirements that we expect will reduce free cash flow during fiscal year 2026.

Coles Group Ltd (ASX: COL)

The Coles share price is currently 0.36% higher at $22.36.

This year, the ASX consumer staples share rose 28.5% to a recent record high of $24.28 before retreating a bit.

Based on today's share price, Coles is up 18% for the year, vastly outperforming its rival Woolworths Group Ltd (ASX: WOW), down 7%.

Michael Gable from Fairmont Equities reviewed the supermarket's recent results:

The supermarket giant recently announced a sales update for the first quarter of fiscal year 2026, which was generally in line with what analysts expected.

Supermarket revenue rose, but liquor revenue fell. Total group sales revenue of $10.963 billion was up 3.9 per cent on the prior corresponding period.

Gable noted that Coles shares have ripped from $18.47 on 19 March to where they are today.

The analyst said his team "can't identify sufficient catalysts to justify the share price".

He concluded:

We believe the recent uptrend is at risk of reversing, partially driven by persistent high cost of living conditions in a subdued economy.

We would be inclined to cash in some gains.

Motley Fool contributor Bronwyn Allen 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 positions in and has recommended Woolworths Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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