How have Nike and Costco performed in 2026?

Nike's stock has fallen about 15% year-to-date, while Costco's stock has risen 8%.

Do other analysts agree with Glassman's change?

Yes, many analysts agree, including Bank of America which upgraded Costco to 'Buy' in May.

Which sectors does Glassman favor now?

He favors the Consumer Defensive sector, represented by Costco, over cyclical sectors like Nike.

James Glassman's Mid-Year Portfolio Shake-Up: Nike Out, Costco In

James Glassman updates his top 30 stock picks for mid-2026, dropping Nike (NKE) and adding Costco (COST) to increase defensive weight in the portfolio.

June 22, 2026

2 min read

Source: Kiplinger

In his mid-year update of the famous "Top 30 Stocks" list, investor and analyst James Glassman made a significant change: replacing Nike (NKE) with Costco (COST).

Recommendation Change

Stock removed: Nike (NKE) – Consumer Cyclical sector.
Stock added: Costco (COST) – Consumer Defensive sector.
Overall shift: Increasing defensive allocation.

Analyst's Rationale

Glassman believes the 2026 market environment is increasingly volatile, warranting a shift toward defensive stocks less sensitive to economic cycles. Costco, with its subscription-based model and essential goods focus, offers stable revenues and consistent margins. In contrast, Nike faces competitive pressures and weakening demand for non-essential athletic goods.

Context

Nike's performance: The stock has fallen about 15% year-to-date due to weak sales in China and high inventory.
Costco's performance: The stock rose 8% in 2026, supported by membership growth and strong store traffic.
Other analyst views: Many analysts agree with Glassman's move; Bank of America upgraded Costco to "Buy" in May.

What to Make of It

The adjustment reflects a cautious outlook for the second half of 2026, favoring companies with inelastic demand. Investors should assess whether this strategy aligns with their own goals and risk tolerance.

Frequently Asked Questions

He believes the 2026 market volatility calls for a shift to defensive stocks like Costco, which generates stable revenue from essentials and memberships, while Nike faces competitive pressures and weakening demand.

Found this useful? Share it

This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.