Sell alert! Experts name 3 ASX 200 stocks to unload today

Two leading investment experts are calling time on these outperforming ASX 200 stocks. But why?

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Key points

  • Investment experts advise selling Super Retail and Collins Foods due to modest growth prospects and market challenges.
  • Super Retail could face headwinds, with analysts seeing better retail sector opportunities elsewhere for passive income investors.
  • Lynas is recommended as a sell due to its recent revenue performance and perceived overvaluation, following significant share price increases over the past year.

Two leading investment experts say that now is the time to sell these three S&P/ASX 200 Index (ASX: XJO) stocks.

One of the companies is a fast food operator, the second is an Aussie rare earths miner, and the third is an Australian retail conglomerate.

Here's why shares in these three companies could be in for a rough patch in the months ahead (courtesy of The Bull).

Two ASX 200 stocks still awaiting a confirmed turnaround

The first company tipped as a sell is Super Retail Group Ltd (ASX: SUL).

Super Retail shares have gained 9% over the past 12 months. Atop those capital gains, the ASX 200 stock also trades on a 5.9% fully franked trailing dividend yield.

But looking ahead, MPC Markets' Mark Gardner sees headwinds building.

"The retail giant's brands include Supercheap Auto, Macpac, Rebel and BCF," said Gardner, who has a sell recommendation on Super Retail shares.

"In our view, Super Retail's profit outlook is modest, with few signs of accelerating growth amid challenging consumer trends," he noted.

Gardner gave a nod to the passive income on offer from Super Retail shares. But he believes there are better opportunities on the ASX for passive income investors.

"The dividend yield is a bright spot, but overall, retail exposure is better gained through JB Hi Fi Ltd (ASX: JBH) or Wesfarmers Ltd (ASX: WES), which we believe offer stronger brands, wider margins and better scale advantages," he said.

Gardner concluded, "Downside risk outweighs the upside without a near-term turnaround."

Gardner also issued a sell recommendation on Collins Foods Ltd (ASX: CKF).

Collins Food shares have surged 34% over the past 12 months. Atop those gains, the ASX 200 stock trades on a fully franked 2.3% trailing dividend yield.

"The company operates hundreds of KFC outlets in Australia and Europe. The company announced in April 2025 that it was exiting the underperforming Taco Bell business," Gardner said.

And he noted that statutory profits have come under heavy pressure.

"Revenue growth in Australia in full year 2025 was partially offset by softness in Europe. Statutory net profit after tax of $8.8 million was down 88.5%," he said.

Gardner concluded, "In our view, fast food peer Guzman Y Gomez (ASX: GYG) presents as a stronger brand with superior momentum. We recommend switching to category leaders while CKF's story remains in transition."

Which brings us to…

Calling time on Lynas shares

Ord Minnett's Tony Paterno recommends cashing in gains on Lynas Rare Earths Ltd (ASX: LYC).

Lynas shares have soared 110% since this time last year, though they remain well down from the multi-year highs notched on 15 October.

"Lynas is the only significant producer of separated rare earths materials outside of China," said Paterno, who has a sell recommendation on the ASX 200 stock.

He noted:

Gross sales revenue of $200.2 million in the first quarter of fiscal year 2026 was up on the prior quarter and the prior corresponding period but missed consensus. The shares have fallen from $21.64 on October 15 to trade at $15.51 on November 19.

Paterno concluded, "In our view, the shares remain overvalued, so investors may want to consider cashing in some gains."

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Super Retail Group and Wesfarmers. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. The Motley Fool Australia has positions in and has recommended Super Retail Group. The Motley Fool Australia has recommended Collins Foods and Wesfarmers. 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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