
Stocks of the Week to Watch
This week, several stocks attracted investors’ attention due to significant price movements. Here are the highlighted stocks of the week:
Nike (NYSE: NKE): Nike’s shares declined approximately 7.8% this week after the release of its fiscal Q1 earnings. Although the company surpassed expectations with an earnings per share (EPS) of $0.70—well above the estimated $0.52—its revenue fell slightly short at $11.6 billion. The most concerning news was Nike’s withdrawal of its annual revenue forecast.
The company cited a transitional period for this decision and also postponed its Investor Day presentation. Following the announcement, Piper Sandler maintained a Neutral rating on the stock, stating that Nike’s choice to retract its annual guidance was a wise move given the transition to a new CEO and the prevailing market conditions. They highlighted that shares, now trading at 35 times fiscal year 2025 estimates, appear expensive considering there has been no growth for two consecutive years.
Humana (NYSE: HUM): Humana experienced a challenging week, with its stock plummeting more than 23% due to a significant drop in enrollments in its highly-rated Medicare insurance plans. Data revealed that only 25% of Humana’s members were enrolled in plans rated four stars or higher for 2025 for Americans aged 65 and older, a sharp decline from 94% in 2024.
BTIG analysts expressed concern regarding the decline in ratings, which could adversely affect Humana’s quality bonuses and overall revenue in 2026. They commented that these ratings were disappointing, especially in light of ongoing pressures from increased claims costs and higher inpatient volumes.
Chinese Financial and Real Estate Stocks: Chinese financial and real estate stocks saw substantial gains this week, with companies including Futu Holdings rising by 54%, UP Fintech by 117%, and KE Holdings by 28%. China Overseas Land & Investments listed in Hong Kong has also gained over 18%.
This rally was fueled by new stimulus measures introduced by the Chinese government, which included easing restrictions for homebuyers and providing additional monetary policy support. Following these developments, analysts at HSBC raised their price targets for several Chinese real estate stocks, indicating a growing optimism about the sector’s recovery, driven by supportive government actions.
HSBC pointed to key factors that contributed to this positive adjustment, particularly the Chinese government’s commitment to stabilizing the real estate market, reshaping the outlook for both developers and investors. UBS analysts noted that the monetary measures were accompanied by pro-growth promises, including efforts to stabilize the struggling real estate market.
Despite this optimism, UBS remained cautious regarding the long-term effects of the stimulus, highlighting the uncertainty surrounding the full implementation and effectiveness of the stimulus package. They pointed out that a sustained equity rally would require ongoing support, as past rallies often faltered when stimulus measures did not meet expectations.