Wolfe Research Flags Nike, Campbell's For Tax-Loss Selling Pressure

According to CNBC, Wolfe Research said mutual funds are set to begin late-season tax-loss selling in mid-September, with Nike and Campbell's Company among the stocks it flagged as vulnerable to sharp declines. The firm said September, October and December are the most common fiscal year-end months for mutual funds, which often sell their biggest losers to offset realized gains and reduce taxable capital gains distributions. Wolfe Research chief investment strategist Chris Senyek said avoiding the biggest year-to-date losers has historically been a positive alpha-generating strategy in the final months of the year because lagging stocks can face selling pressure from investors harvesting losses and from annual report window dressing. Nike is down more than 40% in 2026 and nearly 50% over the past 12 months, while Campbell's shares have fallen almost 22% this year and more than 35% over the past 12 months. BMO Capital Markets initiated coverage of Nike on Tuesday with an underperform rating, and Stephens analyst Jim Salera said Campbell is facing inflation pressure from packaging and energy costs. Wolfe also said a second round of tax-loss selling typically runs from mid-November to mid-December, when retail investors may sell losing positions to offset gains elsewhere in their portfolios.