Buy, hold, sell: Guzman Y Gomez, Worley, and Suncorp shares

Analysts have been busy running the rule over several ASX shares this week.

Let’s see what they are saying about these shares, courtesy of The Bull. Here’s what you need to know:

Guzman Y Gomez Ltd (ASX: GYG)

The team at Red Leaf Securities is bearish on this Mexican quick service restaurant operator and has named it as a sell this week.

It feels that the company’s shares are expensive, especially given how much value the market is placing on its ambitious global expansion. It explains:

GYG is a Mexican themed restaurant chain. We retain a sell rating despite Australian brand strength. Expansion in the United States is in its early stages and carries execution risk. Challenges include increasing labour costs, operating costs and competition.

Revenue and profit growth were overshadowed by share price weakness after the company released its first half result in fiscal year 2026 on February 20. In our view, investors are paying a premium for ambitious long term store targets. In a higher cost-of-capital environment, the valuation leaves little margin for error.

Suncorp Group Ltd (ASX: SUN)

Another ASX share that Red Leaf Securities has been looking at is insurance giant Suncorp.

It has concerns that the company’s margins have peaked and believes it could be vulnerable to competitive pricing pressure. As a result, it has named Suncorp shares as a sell. It explains:

Suncorp provides insurance products and services. While premium rate increases have helped, we believe margin expansion is peaking. Earnings are exposed to claims inflation, natural catastrophe volatility and regulatory scrutiny. Half year results to December 31, 2025 highlighted these risks. Profit after tax of $263 million was down from $1.1 billion in the prior corresponding period.

Cash earnings were hit by higher natural hazard costs and the interim dividend was reduced. Much of the recent improvement reflects cyclical conditions rather than structural change. In our view, the valuation is vulnerable given competitive pricing pressure and rising affordability concerns.

Worley Ltd (ASX: WOR)

Over at EnviroInvest, its analysts think that Worley shares are a buy.

They like the engineering services company due to its exposure to sustainability and energy transition work. EnviroInvest said:

Worley provides engineering and project services across energy, chemicals and resources. Aggregated revenue of $6.3 billion in the first half of fiscal year 2026 was up 5.4 per cent on the prior corresponding period. Underlying earnings before interest, tax and amortisation of $377 million was up 0.3 per cent. More than half of new awards were linked to sustainability and energy transition work. Legacy hydrocarbons exposure remains, but capital is increasingly directed to low carbon infrastructure.

The post Buy, hold, sell: Guzman Y Gomez, Worley, and Suncorp shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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.