It may be time to hit the sell button on Endeavour Group Ltd (ASX: EDV) and A2 Milk Co Ltd (ASX: A2M) shares.
That's according to Dolphin Partners Financial Services' Arthur Garipoli (courtesy of The Bull).
Both S&P/ASX 200 Index (ASX: XJO) stocks have come under renewed selling pressure in 2026.
Recently trading at $5.89 a share, A2 Milk shares are 35.9% year to date.
And shares in Endeavour, which owns and operates liquor outlets, hotels and gaming venues, are down some 16.3% this calendar year.
For some context, the ASX 200 is down 1.5% over this same period.
And looking ahead, Garipoli foresees more headwinds for both beaten down stocks.
Here's why.
Image source: Getty Images
Time to sell A2 Milk shares?
"This infant milk formula company recently initiated a voluntary recall of three small batches of product sold in the United States," Garipoli said. "The company announced the recall was isolated to the US label product."
Commenting on the company's 13 April trading update, Garipoli noted:
The shares have remained under pressure since April when the company downgraded guidance in full year 2026. It expects lower infant milk formula sales, mostly related to Chinese labels.
The EBITDA [earnings before interest, taxes, depreciation and amortisation] percentage margin is forecast to decline from previous guidance of between 15.5% to 16% to between 14% to 14.5%.
Investors responded to that news by sending A2 Milk share tumbling 12.0% on the day.
Summarising his sell recommendation on the ASX 200 dairy stock, Garipoli concluded, "Other stocks offer more appealing outlooks. The shares have fallen from $9.24 on April 10 to trade at $6.45 on May 13."
Which brings us to…
Time to exit Endeavour shares?
Atop recommending exiting A2 Milk shares, Garipoli also has a bearish outlook on Endeavour shares.
"Endeavour operates liquor outlets, hotels and gaming facilities," he said.
But despite its leading position in Australia, Garipoli expects Endeavour could struggle over the coming months.
He noted:
While Endeavour is a leader in the liquor retailing space, the business is operating in a challenging economic environment involving fierce competition, continuing margin pressure and macroeconomic shocks. Many analysts have cut forecasts to reflect softer trends.
Then there's the impact of the ongoing Iran conflict.
According to Garipoli:
Increasing fuel costs in response to the Middle East conflict is imposing pricing pressure throughout its supply chain. Increasing cost of living pressures is another challenge. The shares have fallen from $4.04 on March 2 to trade at $3.23 on May 13.
Summarising his sell recommendation on Endeavour shares, he concluded, "Other stocks appeal more in this economic climate of higher interest rates and cash strapped consumers."
