Knowing which ASX shares to avoid can be just as important as knowing which ones to own when you are seeking to outperform the market.
After all, if you own shares that are likely to fall in value, your portfolio returns will be dragged down along with them.
So, with that in mind, let's look at three ASX shares that analysts have named as sells this week, courtesy of The Bull. Here's what they are bearish on:
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Bapcor Ltd (ASX: BAP)
This struggling auto parts retailer has been named as a sell by Investor Pulse.
Given the tough trading conditions that Bapcor is facing, it thinks investors should be focusing on other opportunities. It said:
Bapcor is an aftermarket automotive parts provider in Australia and New Zealand. It operates the Autobarn, Burson and Autopro brands. It reported improving sales from turnaround activities between February and April 2026. However, trading conditions had materially deteriorated since late March 2026 in response to the Middle East conflict and an increase in interest rates. It has reduced fiscal year 2026 earnings guidance on what it provided on February 26, 2026. The company also flagged higher operating costs. The share price remains under pressure. The stock has fallen from $5.22 on July 14, 2025 to trade at 38 cents on May 21, 2026. Better options exist elsewhere, in our view.
Telstra Group Ltd (ASX: TLS)
Shaw and Partners is bearish on Telstra shares and has named them as a sell this week.
The broker believes its shares are expensive at current levels, especially given its limited growth potential and narrowing dividend yield. It explains:
Telstra is currently trading at elevated levels, in our view, with its defensive appeal pushing the share price higher. However, underlying growth remains limited, and the dividend yield is becoming less attractive as the share price rises. Recent updates show steady but low growth across its core business segments, according to our analysis. Valuations are now stretched and the risk-reward balance is less compelling. The shares have risen from $3.89 on February 10, 2025 to trade at $5.45 on May 21, 2026. We would be inclined to take a profit at these levels.
Woodside Energy Group Ltd (ASX: WDS)
Another ASX share that Shaw and Partners is bearish on this week is energy giant Woodside.
After strong gains were recorded by Woodside shares, the broker thinks investors should be locking in profits and moving onto other opportunities. It said:
Woodside has benefited from elevated oil and gas prices driven by geopolitical tensions in the Middle East. However, in our view, the share price strength appears largely macro driven rather than based on underlying company improvements. Given Middle East tensions are expected to ease over time, energy prices could soften and reduce earnings support. The stock now appears fully valued. In response to share price gains, it makes sense to lock in profits and re-allocate the proceeds to opportunities with stronger growth outlooks.
