Sell alert! Why this expert is calling time on A2 Milk and NAB shares

A leading analyst forecasts more headwinds for A2 Milk and NAB shares in 2026.

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A2 Milk Co Ltd (ASX: A2M) and National Australia Bank Ltd (ASX: NAB) shares have underperformed the S&P/ASX 200 Index (ASX: XJO) both year to date and over the past 12 months.

In early afternoon trade on Wednesday, NAB shares are up 0.1%, changing hands for $37.05 apiece.

This sees shares in the ASX 200 bank stock down 3% over the past 12 months and down 12.6% in 2026. Somewhat mitigating the pain from those capital losses, NAB stock trades on a 4.6% fully-franked trailing dividend yield.

It's been an even tougher slog for A2 Milk stockholders.

At time of writing, shares in the ASX 200 infant milk formula company are down 0.5%, trading for $5.46 each.

This puts the A2 Milk share price down 31% in a year and down a sharp 40.6% in 2026. And A2 Milk shares' 3.1% fully-franked trailing dividend yield won't have done much to ease those losses.

To put this performance in some perspective, the ASX 200 has gained 3.7% over the past year and is up 0.6% in 2026.

And looking ahead, Catapult Wealth's Dylan Evans expects both ASX 200 stocks could continue to struggle (courtesy of The Bull).

Here's why.

Red sell button on an Apple keyboard.

Image source: Getty Images

Should I sell NAB shares today?

"The bank's first half result in fiscal year 2026 was underwhelming, in our view," Evans said.

And he pointed to recent changes announced in the Federal budget, coupled with households pressured by rising interest rates, that could throw up new headwinds for the bank.

Summarising his sell recommendation in NAB shares, Evans concluded:

Investment loans account for about a third of residential lending. Proposed changes to negative gearing and capital gains tax are likely to reduce loan and property price growth, in our view.

Given higher interest rates and affordability pressures, NAB may struggle to deliver the growth needed to support current expectations.

A2 Milk shares could remain under pressure

Atop recommending exiting NAB shares, Evans also issued a sell recommendation on A2 Milk shares.

"This infant milk formula company recently initiated a voluntary recall of three small batches of contaminated product sold only in the United States," he said.

"While the recall didn't impact the key Chinese market, it poses a reputational risk in a country and segment that is sensitive to brand reputation," he noted.

Then there's the company's recent issues in securing the needed supplies to meet demand.

Evans concluded:

A recent trading update revealed supply chain disruptions are constraining product availability despite strong underlying demand. The shares have remained under pressure since April when the company downgraded guidance in full year 2026.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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