2 ASX 200 shares I’d buy and 1 I’d sell this month

The S&P/ASX 200 Index (ASX: XJO) has fallen into the red again on Thursday morning, reversing most of the gains made so far in June, and continuing the run of volatility.

I always think that when markets look uncertain, it’s a good idea to review your share portfolio and make sure your investments are in the right place.

Here are two ASX 200 shares I’d buy this month, and one I’d sell.

I’d buy Catalyst Metals Ltd (ASX: CYL) shares

Catalyst Metals shares are down around 2% at the time of writing on Thursday morning, and are trading at $5.28 a piece. The drop means the shares are now around 29% lower for the year to date and 26% lower than 12 months ago.

It’s been a volatile run for the ASX gold producer this year. Its share price spiked to an all-time high in January after it announced a significant new high-grade discovery at its Plutonic Gold Belt. 

But it has lost around 44% of its value ever since. The downturn is likely due to a significant increase in mining costs and a weaker ASX gold sector after a strong run late last year. Fluctuating sentiment has led many investors to sell their gold shares and rotate into larger, more stable assets. 

But Catalyst Metals has shown a long period of operational consistency and organic growth. The miner expects production to increase towards the latter half of FY26 as well. 

It also posted a positive drilling update in early May. The results included visibility of a potential mine life of more than 10 years at approximately 60,000 ounces per annum.

I think the Catalyst Metals’ share price will rebound soon enough, and I’d buy in the dip while they’re still going for cheap.

Analysts rate the ASX 200 shares as a strong buy and tip an average target price of $13.75. That implies a potential 160% upside at the time of writing.

I’d buy Guzman Y Gomez (ASX: GYG) shares

The Mexican-themed fast-food restaurant chain’s shares hit a historic low in early April but have since rebounded 25%. At the time of writing, the ASX consumer discretionary shares are changing hands for $19.05 a piece. The shares are still 12% lower year to date and 37% lower than a year ago.

After multiple headwinds and sombre sentiment so far this year, Guzman Y Gomez shares look like they have finally changed course. The latest rebound comes on the back of news that the company closed its struggling US stores to focus its business expansion on Asia and Australia.

The company’s long-term goal remains to reach 1,000 restaurants in Australia, with segment EBITDA at 10% of network sales. Its Singapore expansion has already become successful, and it looks like the company can quickly build its presence in the right markets.

Most analysts rate the ASX 200 shares as a buy and tip a 28% upside to an average $24.53 target price, at the time of writing.

I’d sell Beach Energy Ltd (ASX: BPT) shares

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 now around 7% lower year to date and 20% lower than 12 months ago.

While the oil and gas explorer and producer’s shares flew higher off the back of geopolitical tensions in March, they tumbled just as quickly.

Investor sentiment was slashed when the company posted its third-quarter update in April. It 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.

The majority of brokers have a sell rating on the shares. But the $1.12 average target price still implies a potential 3% upside, at the time of writing.

The post 2 ASX 200 shares I’d buy and 1 I’d sell this month appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Brokers rate these 5 ASX 200 shares as a sell!
• 2 ASX shares highly recommended to buy: Experts
• 5 things to watch on the ASX 200 on Tuesday
• Why Guzman y Gomez shares could shoot 30% higher after exiting the US market

Motley Fool contributor Samantha Menzies 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.