Xero Ltd (ASX: XRO) shares have enjoyed a strong rebound this week, while CSL Ltd (ASX: CSL) shares continue to struggle.
In early afternoon trade on Friday, Xero shares are up 5.7% at $88.68 each. This sees shares in the S&P/ASX 200 Index (ASX: XJO) business and accounting software provider up 6.7% since last Friday's close, compared to the 4.1% one-week loss posted by the benchmark index.
CSL shares aren't faring quite as well, though they're still outperforming the benchmark. Down 0.9% at time of writing at $145.19 apiece, shares in the ASX 200 biotech giant are down 1.1% this week.
Looking ahead, however, Fairmont Equities' Michael Gable expects both ASX 200 stocks will underperform (courtesy of The Bull).
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Time to sell Xero shares?
Despite this week's outperformance, Xero shares remain down more than 48% over 12 months.
Commenting on the ASX 200 tech stock late last week, before the United States and Israeli military strikes on Iran, Gable noted:
Xero is a global accounting software provider. XRO is a great business, but it's caught up in a major sector rotation, where investor funds have been moving out of technology stocks with high price/earnings ratios and into hard assets.
Indeed, Xero trades on P/E ratio of around 53 times.
Explaining his sell recommendation on Xero stock, Gable said:
The downtrend in the share price indicates sellers were recently still in control and any price bounces are struggling to gain traction. We believe the shares will remain under pressure until the market stops trying to pick the bottom. The shares have fallen from $194.21 on June 24, 2025 to trade at $81.525 on February 26, 2026.
CSL shares still plagued by uncertainty
The CSL share price is down more than 44% in 12 months.
Gable also issued a sell recommendation on CSL.
"This biotechnology giant was a market darling for a long time," he said.
He added:
But it's now failing to command a premium as uncertainty surrounding the company's US vaccine business is making it more difficult for investors to forecast future earnings. The recent departure of its chief executive also adds to the uncertainty.
CSL reported on the unexpected exit of CEO Paul McKenzie after market close on 10 February. McKenzie held the top spot for three rather tumultuous years. CSL shares close down 4.6% the following day on the news.
And Gable believes the share price may have further to fall.
He concluded:
From a technical perspective, the stock has topped out and is trending lower. In my view, this leaves further downside risk in the share price until investors feel more confident that CSL can lift earnings. The shares have fallen from $271.32 on August 18, 2025 to trade at $145.68 on February 26, 2026.
