The S&P/ASX 200 Index (ASX: XJO) has fallen into the red again on Tuesday afternoon off the back of a broad sell-off across financial and real estate stocks, and uncertainty about a potential peace deal between the US and Iran.
When markets are volatile, it's important to know which ASX 200 shares are good investments and which have a weaker outlook.
Here are 5 ASX 200 shares that brokers rate as a sell, according to Market Index data.
Image source: Getty Images
Westpac Banking Corp (ASX: WBC)
Westpac shares are down around 2% at the time of writing to $35.44 each. The banking giant's shares are now around 9% lower year to date but still 10% higher than 12 months ago. The bank posted a solid first-half result in early May, but broad bank sector weakness has still pulled the shares lower. Westpac shares came under additional selling pressure last month after a court ruling weighed on sentiment. It looks like Westpac shares could still be overvalued. The majority of brokers rate Westpac shares as a strong sell and tip a 4% downside to an average target price of $33.97 over the next 12 months.
Sonic Healthcare Ltd (ASX: SHL)
Sonic shares hit a multi-year low in late May and have continued to regain any meaningful momentum. At the time of writing, the shares are down around another 2.5% to $18.78 each. For the year to date, the ASX 200 healthcare shares are down around 16% and are 30% lower than this time last year. Sonic has been caught up in the sector-wide rotation away from ASX healthcare shares this year, and it has also faced some company-specific headwinds. The team at Ord Minnett thinks the company could be negatively affected by proposed changes to medical fees in Germany and notes that it lacks organic growth. Market Index data shows a combined sell rating. But after last month's sell-off, the average target price still implies a potential 13% upside, at the time of writing.
Bank of Queensland Ltd (ASX: BOQ)
The mid-tier ASX 200 bank's share is down around 1% at the time of writing, to $6.13 a piece. The decline means the shares are down around 7% year to date and 22% from 12 months ago. The bank posted a weaker-than-expected first-half FY26 result in April and flagged tougher conditions for the remainder of the year. Investors reacted negatively, and analysts revised their outlooks following the announcement. Market Index data shows brokers have a sell rating on the shares. The average target price of $6.14 is just one cent above the current trading price at the time of writing.
Commonwealth Bank of Australia (ASX: CBA)
CBA shares are down around 0.5% on Tuesday afternoon, to $162.56 each. The shares are now around 1% higher year to date but nearly 8% lower than 12 months ago. The ASX 200 banking giant's shares dropped 14% in mid-May after it posted a disappointing third-quarter capital update. But after a sharp sell-off, investors quickly bought back into the stock. The banking giant seems to be supported by a flight to quality. In unstable markets, investors often rotate into large companies with stable dividends and dominant market positions to mitigate volatility. But it looks like brokers still see the ASX 200 bank shares as overpriced. They rate CBA shares as a strong sell and tip a 23% downside to an average target price of $124.20, at the time of writing.
Beach Energy Ltd (ASX: BPT)
Beach Energy shares are slightly higher today, up around 0.2% to $1.10 at the time of writing. The oil and gas exploration and production company's shares are just over 6% lower year to date and 18% below their 12-month trading levels. Beach Energy posted its third-quarter update in April, which revealed softer sales, a guidance downgrade, and ongoing operational disruptions. The update spooked investors, and now many are worried about the company's earnings outlook from here. The majority of brokers have a sell rating on the shares, but the average $1.12 target price implies a small 2% upside at the time of writing.
