Sell alert! Why this expert is calling time on Flight Centre and CBA shares

Flight Centre Travel Group Ltd (ASX: FLT) and Commonwealth Bank of Australia (ASX: CBA) shares have both lost ground over the past full year, while the S&P/ASX 200 Index (ASX: XJO) has gained 1.8%.

On Monday, Flight Centre shares were trading for $11.54 apiece. That sees shares in the ASX 200 travel stock down 6% over 12 months.

Though that doesn’t include the two fully-franked dividends totalling 42 cents a share Flight Centre paid eligible stockholders over this time. Flight Centre trades on a full-franked 3.6% dividend yield.

As for CommBank, shares in the ASX 200 bank stock were recently trading for $161.06 each. This sees the CBA share price down 4.3% over 12 months.

CBA also paid two fully-franked dividends over the past year, totalling $5.05 a share. CBA stock trades on a 3.1% fully-franked trailing dividend yield.

And looking ahead, Medallion Financial Group’s Stuart Bromley believes both big-name ASX 200 stocks are likely to keep underperforming in the upcoming months (courtesy of The Bull).

Here’s why.

Time to sell CBA shares?

“CBA remains Australia’s highest quality major bank,” Bromley said.

He noted:

The company posted cash net profit after tax of $10.982 billion in full year 2026, up 7 per cent on the prior corresponding period. The full year dividend of $5.05, fully franked, is up 4 per cent.

However, Bromley issued a sell recommendation on CBA shares.

He explained:

Despite the strong result, we believe the valuation is stretched, particularly as higher interest rates weigh on housing activity and credit growth. CBA shares were recently trading at historically elevated valuations compared to global peers. Better valuation opportunities exist elsewhere.

As for CBA’s passive income potential, Bromley concluded, “The recent dividend yield of 3.16 per cent lacks appeal.”

Which brings us back to…

Time to exit Flight Centre shares?

Atop his bearish outlook for CBA shares, Bromley also issued a sell recommendation on Flight Centre shares.

According to Bromley:

The global travel agency group delivered record total transaction volumes in full year 2026. However, underlying profit before tax of $278 million declined by 4 per cent as Middle East disruption weighed heavily on the leisure business.

We view geopolitical uncertainty, airline capacity constraints and softer consumer conditions as headwinds. We see better risk-adjusted opportunities elsewhere.

Commenting on the impact of the Iran war last month, Flight Centre CEO, Graham Turner said:

In Q4, the Middle East conflict disrupted travel patterns, That was an external shock, not a change in the leisure business’s underlying strength, and momentum is already returning, with July TTV at record levels for the month.

Flight Centre shares closed down 7.4% when the company reported those results on 26 August.

The post Sell alert! Why this expert is calling time on Flight Centre and CBA shares appeared first on The Motley Fool Australia.

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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 recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.