S&P/ASX 200 Financials Index (ASX: XFJ) shares are down 0.3% to 9,124.3 points on Thursday.
However, financial shares are outperforming the broader market, with the benchmark S&P/ASX 200 Index (ASX: XJO) down 0.7%.
On The Bull this week, two experts revealed three financial stocks that they've sell-rated for the new year.
Here's why.
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ANZ Group Holdings Ltd (ASX: ANZ)
The ANZ share price is $36.36, down 0.11% on Thursday and up 19% over the past 12 months.
ANZ was among the top 5 ASX 200 financial shares for capital growth in 2025.
However, looking ahead, Remo Greco from Sanlam Private Wealth has a sell rating on the bank stock.
Investors responded positively after the bank unveiled its 2030 strategy in late 2025.
The 2030 strategy included ceasing the $800 million share buy-back and accelerating delivery of the ANZ Plus digital front end to all retail and business customers.
Reducing duplication and simplifying the bank is part of the plan.
Greco noted that the ASX 200 financial share rose from $32.67 on 24 September to close at $38.85 on 12 November.
During intraday trading on 12 November, ANZ shares reached a new record high of $38.93.
Greco said the bounce was understandable because ANZ was the cheapest major bank in the sector, with the highest yield, at the time.
Looking ahead, Greco says the stock is now "trading at a premium given the early stages of an ambitious strategy".
He concluded:
We would be inclined to lock in some profits at these levels.
Magellan Financial Group Ltd (ASX: MFG)
The Magellan share price is $8.82, up 0.63% today and down 29% over the past year.
John Athanasiou from Red Leaf Securities has a sell rating on the fund manager.
Magellan faces the challenges of fee pressure, potentially slower fund inflows and increasing competition from passive and low-cost global managers.
In our view, growth catalysts are limited in the longer term.
Returns can vary depending on market performance.
Existing investors may consider reducing exposure, while new capital is better allocated to businesses with stronger earnings visibility.
The analyst noted that this ASX 200 financial share has tumbled by 28% from $12.18 apiece on 24 January 2025 to $8.82 today.
Medibank Private Ltd (ASX: MPL)
The Medibank Private share price is $4.64, up 0.32% today and up 20% over the past 12 months.
Greco says this ASX 200 insurance share is also a sell, commenting:
MPL is a private health insurer, operating in a fiercely competitive sector.
Cost-of-living increases may pressure some policy holders to downgrade or cease their cover.
We expect private health cover premiums to attract Federal Government scrutiny, while private hospitals are demanding a better deal from private health insurers.
The analyst said Medibank had performed well over the past few years.
However, the outlook "appears challenging in a difficult economic environment", he said.
The Medibank share price has gone from $5.26 on 21 August to $4.64 today, a decline of 12%.
