Weekly equity roundup: retail resilience, pharma pressure and precious metals surge
Three contrasting stories emerge from this week's markets, showcasing the diverse opportunities across global equities.
Next continues its remarkable upgrade streak
Next has delivered another profit upgrade, raising its full-year pre-tax profit forecast to £1.105 billion. This marks the retailer's third upgrade in just five months, cementing its reputation as a consistently reliable performer.
The upgrade follows a robust 10.5% rise in second quarter (Q2) full-price sales, which came in £49 million above prior guidance. Unusually warm weather and online disruption at rival Marks & Spencer contributed to the stronger-than-expected performance.
International sales proved particularly impressive, surging 26.4% and boosting management's confidence for the year ahead. The company now expects full-price sales to grow 4.5% in the second half, up from its previous forecast of 3.5%.
Novo Nordisk faces mounting US competitive pressure
Novo Nordisk shares plunged a further 3.1% this week following the company's profit warning and new CEO appointment. The decline wiped approximately $70 billion off its market cap, adding to the previous day's 23% drop.
The warning centres on increased US competition from compounded versions of Wegovy, the company's blockbuster weight-loss drug. These copycat treatments are putting significant pressure on sales growth and investor confidence in the pharmaceutical giant.
The stock has now tumbled nearly two-thirds from its $615 billion valuation peak in mid-2024. Barclays downgraded the stock to "equal-weight", citing a credibility gap between management messaging and market concerns about competitive threats.
With such a sharp valuation reset underway, some investors may view the recent decline as potentially creating value. However, execution risk remains high as the company must successfully defend its US franchise against mounting competitive pressure.
Fresnillo leads FTSE 100 with spectacular precious metals rally
Fresnillo has emerged as the FTSE 100 standout performer for 2025, delivering a near 140% gain over 12 months. The precious metals miner has benefited from surging silver and gold prices throughout the period.
Silver prices have climbed approximately 10% in 2025 alone, building on a 21% gain in 2024. This commodity strength helped Fresnillo more than double its 2024 EBITDA to $1.55 billion, whilst revenue surged 27% to $3.64 billion.
The company delivered robust free cash flow and surprised investors with a special dividend payment. Total shareholder returns reached approximately $547.5 million, positioned at the top end of the company's payout range.
However, recent guidance signals caution around silver output, with lower ore grades expected to impact near-term performance. Despite this, gold production remains on track at the upper end of guidance, providing some offset to silver headwinds.
Market dynamics reveal contrasting sector themes
This week's equity moves highlight the diverse forces shaping UK markets currently. Retail resilience, pharmaceutical vulnerability and commodity strength each tell different stories about the current economic environment and investor preferences.
Next's consistent upgrades demonstrate that high-quality operators can still thrive despite challenging consumer conditions. The company's share trading appeal lies in its operational excellence and ability to navigate difficult trading environments successfully.
Novo Nordisk's struggles illustrate how even dominant pharmaceutical companies face significant competitive threats. The weight-loss drug market's rapid evolution shows how quickly competitive dynamics can shift, creating both opportunities and risks for investors.
Fresnillo's remarkable performance reflects the current appeal of precious metals as both an inflation hedge and safe-haven asset. The company's success demonstrates how commodity exposure can provide portfolio diversification during uncertain economic times.
These contrasting stories underscore the importance of diversification when building equity portfolios. Different sectors face varying headwinds and tailwinds, making stock selection increasingly crucial for portfolio performance.
Important to know
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Connect with us
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Professional clients trading spread bets and CFDs can lose more than they deposit.
Options and futures are complex instruments which come with a high risk of losing money rapidly due to leverage. They’re not suitable for most investors. Before you invest, you should consider whether you understand how options and futures work, the risks of trading these instruments and whether you can afford to lose more than your original investment.
Trading stocks and shares ‘on margin’ within a US options and futures account – meaning that you only finance part of the cost of acquiring a position in a security – carries additional risks over buying securities on a fully funded basis and may result in losses exceeding your original investment. Trading on margin will also result in additional costs to you as the investor and any securities purchased using margin may be held as collateral by the lender, restricting both your rights as shareholder, and your ability to use the securities until the margin trade is closed. You should familiarise yourself with these risks before trading on margin.
The value of shares, ETFs and other ETPs bought through a share dealing account, a US options and futures account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results. Some ETPs carry additional risks depending on how they’re structured, investors should ensure they familiarise themselves with the differences before investing.
Share dealing and IG Smart Portfolio accounts provided by IG Trading and Investments Ltd, CFD accounts and US options and futures accounts are provided by IG Markets Ltd, spread betting provided by IG Index Ltd.
IG is a trading name of IG Trading and Investments Ltd (a company registered in England and Wales under number 11628764), IG Markets Ltd (a company registered in England and Wales under number 04008957) and IG Index Ltd (a company registered in England and Wales under number 01190902). Registered address at Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA. IG Markets Ltd (Register number 195355), IG Trading and Investments Ltd (Register Number 944492) and IG Index Ltd (Register number 114059) are authorised and regulated by the Financial Conduct Authority.
The information on this site isn’t directed at residents of the United States, Belgium or any particular country outside the UK and isn’t intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.