Commonwealth Bank of Australia (ASX: CBA), Codan Ltd (ASX: CDA), and Woodside Energy Group Ltd (ASX: WDS) shares are popular among investors.
But which one is a buy, which one is a hold, and which one is a sell? Here's my take on all three ASX shares.
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CBA shares
CBA remains my preferred ASX bank share.
That does not mean it is the cheapest bank on the market. It often trades at a premium to the other major banks, and investors should be realistic about that.
But I think CBA deserves a higher valuation because it is the highest-quality bank in Australia, in my view.
The bank has a powerful retail franchise, a large deposit base, a strong brand, leading digital capability, and a track record of managing risk well. Those qualities are valuable in a banking sector where competition remains intense and economic conditions are not always easy.
I also like CBA for its dividend profile. It may not always offer the highest yield among the big banks, but I think the combination of income, quality, and potential capital growth makes it attractive for long-term investors.
In a more uncertain environment, I would rather own the bank I think is best positioned than simply buy the one that looks cheapest.
That is why I would call CBA shares a buy.
Codan shares
Codan is a harder call. I am a big fan of the business. The company has built strong positions across areas such as metal detection, communications, and technology used by customers in defence, security, mining, and other specialist markets.
I like businesses that sell products where reliability, field performance, and customer trust really count. Codan has spent years building that kind of reputation.
The challenge is the share price. Codan has recently hit a record high, which makes me more cautious in the short term. A great business can still become harder to buy when the market has already rewarded it strongly.
That does not mean I would sell. I think Codan still has plenty of long-term appeal, particularly if it can keep investing in product development, expanding its customer base, and growing in attractive global niches.
But after such a strong run, I would be more inclined to hold than buy aggressively this week.
Woodside shares
Woodside is the ASX share I would sell. The energy giant can generate large cash flows when oil and gas markets are supportive, and it has been a major dividend payer for many investors. But I think the outlook has become less attractive.
Oil price weakness is a key reason. Easing tensions in the Middle East and the reopening of the Strait of Hormuz have reduced some of the geopolitical pressure that had supported energy prices.
At the same time, the longer-term picture is changing. Growing electric vehicle adoption may gradually reduce demand growth for transport fuels, particularly in developed markets.
Woodside still has valuable assets, and energy demand will not disappear overnight. But I think investors need to be selective with cyclical resource shares. When the commodity price backdrop weakens, earnings and dividends can come under pressure quickly.
For me, the risk/reward does not look compelling enough right now.
Foolish takeaway
If I had to choose between these three ASX shares today, I would buy CBA, hold Codan, and sell Woodside.
CBA offers the quality I want in a major bank. Codan remains an excellent business, but its record-high share price makes me more patient. Finally, Woodside faces a softer oil price backdrop and longer-term demand questions that make me cautious.
