The Australian Securities Exchange (ASX) offers a wide array of investment opportunities, yet not every stock is a wise buy. This week, financial experts have identified three ASX 200 shares that investors might consider selling. These recommendations, highlighted by The Bull, focus on companies facing significant challenges. Here’s a closer look at the stocks in question: Domino’s Pizza Enterprises Ltd, Santos Ltd, and Web Travel Group Ltd.
Domino’s Pizza Enterprises Ltd: Struggling Amidst Restructuring
Domino’s Pizza Enterprises Ltd (ASX: DMP) has been flagged by Bell Potter as a stock to sell. The pizza chain operator recently reported its first net loss since its listing two decades ago, marking a challenging fiscal year 2025. Despite ongoing restructuring efforts, the company’s outlook remains uncertain.
The fast food giant recently posted its first annual net loss since listing in May 2005. A statutory net loss of $3.7 million in fiscal year 2025 was impacted by one-off items. Guidance is cautious, and earnings before interest and tax pressures persist despite aggressive restructuring.
Franchisee sentiment is reportedly mixed, and rising input costs show no signs of abating. Bell Potter analysts express concern over the company’s demanding valuation relative to its earnings certainty, with execution risks overshadowing potential recovery.
Santos Ltd: Under Pressure After Failed Takeover
Energy giant Santos Ltd (ASX: STO) has also been identified as a sell by experts at MPC Markets. Following a recent decline in its share price, analysts remain skeptical about the company’s prospects without a new takeover bid.
Shares in the energy giant were punished after the XRG consortium withdrew its $US30 billion takeover bid in September, just days before the expected decision date. The shares have fallen from $7.65 on September 17 to trade at $6.47 on October 23.
The failed takeover has cast doubts on Santos’ standalone capabilities and its potential to generate value independently. The resignation of its chief financial officer further adds to the company’s instability. In the absence of another acquisition offer and facing potentially weaker energy prices, Santos’ shares are expected to remain under pressure.
Web Travel Group Ltd: Facing Margin Challenges
Sequoia Wealth Management advises against investing in Web Travel Group Ltd (ASX: WEB), a business-to-business travel technology company. Despite its global reach, the company faces challenges with its margins falling below target.
This global business-to-business group services the travel industry. The company’s technology connects hotels and other travel sellers to a diverse network of travel buyers across the world. A strong euro relative to the Australian dollar has provided a tailwind, which, in our view, is likely to moderate moving forward.
Recent updates indicate that the company’s total transaction value (TTV) margins are expected to decrease, with first-half 2026 margins projected between 6.2 and 6.4 percent, down from 6.7 percent in 2025. The stock’s price has also dropped significantly, from $5.26 in May to $4.29 in October, prompting experts to suggest exploring other investment options.
Market Context and Investor Considerations
The recommendations to sell these stocks come amidst broader market uncertainties and sector-specific challenges. For Domino’s, the fast-food industry is grappling with rising costs and shifting consumer preferences. Meanwhile, Santos faces volatility in the energy sector, compounded by geopolitical tensions and fluctuating oil prices. Web Travel Group’s challenges are reflective of the travel industry’s ongoing recovery post-pandemic, with currency fluctuations adding another layer of complexity.
Investors are advised to consider these factors and assess their portfolios accordingly. While selling might be prudent for some, others might see potential in these companies’ long-term strategies. As always, diversification and a keen eye on market trends remain key to navigating the current financial landscape.
As these companies continue to address their respective challenges, the coming months will be crucial in determining their trajectories. Investors should stay informed and consult with financial advisors to make well-rounded decisions.
