It may be time to sell JB Hi Fi Ltd (ASX: JBH) and Westpac Banking Corp (ASX: WBC) shares.
That's according to Fairmont Equities' Michael Gable, who this week issued a sell recommendation for both the S&P/ASX 200 Index (ASX: XJO) bank stock and the ASX 200 electronics retailer (courtesy of The Bull).
In early afternoon trade today, JB Hi-Fi shares are down 1.4%, changing hands for $77.47 apiece.
Westpac shares are sliding as well, down 1.1% at $38.06 each.
This sees both stocks trailing the 0.6% losses posted by the benchmark index at this same time.
Longer-term, Westpac shares remain up 17.4% over 12 months, excluding dividends.
JB Hi-Fi shares have had a more difficult year, down 25.2% in 12 months, also not including dividends.
Looking ahead, with an eye on rising inflation and the resulting higher interest rates, Fairmont Equities' Gable believes both ASX 200 stocks could be in for a rough patch.
Image source: Getty Images
Time to sell Westpac shares?
"We had previously been bullish on the banks when they were trending higher from high levels of momentum," said Gable. "However, they are stalling at current levels."
Commenting prior to today's half year results release, which look to be pressuring Westpac shares, Gable noted, "A recent trading update by WBC indicated economic conditions could be getting tougher in response to rising interest rates, inflation and potential fuel shocks."
Indeed, at today's results release – which saw Westpac report a 3% year-on-year increase in statutory net profit to $3.4 billion – Westpac CEO Anthony Miller cautioned:
The war in the Middle East is presenting challenges for some customers and the economic impact of the conflict will continue through the year. The disruption to energy supply chains has driven a rise in prices and we're seeing this flow through to businesses and households…
Summarising his sell recommendation on Westpac shares, Gable concluded:
In our view, challenging economic conditions are likely to impact lending activity and credit quality. Even a robust dividend yield may not be enough to prevent a further slide in WBC's share price.
Should you sell JB Hi-Fi shares?
Atop Westpac shares, Gable also foresees economic headwinds building for JB Hi-Fi shares.
"With interest rates possibly rising again on top of higher fuel prices, we would be cautious about discretionary retail stocks," he said.
According to Gable:
Households are under increasing pressure from higher cost of living expenses, which could result in consumers cutting discretionary spending. This consumer electronics giant faces the challenge of sustaining revenue and earnings in a potentially softer economy.
From a charting perspective, the share price remains in a downtrend. The shares have fallen from $121 on August 20, 2025 to trade at $78.10 on April 30, 2026. We would be inclined to cash in some gains at this stage of the cycle.
