• Trump’s commerce conflict, U.S. jobs report, and final batch of This fall earnings shall be in focus this week.
• Costco’s earnings report is seen as a possible catalyst for development, making it a inventory to observe for bullish traders.
• Foot Locker is bracing for a disappointing replace attributable to sluggish demand for discretionary attire, making it a inventory to keep away from.
• On the lookout for extra actionable commerce concepts? Subscribe right here to unlock entry to ProPicks AI winners.
U.S. shares closed greater on Friday to wrap up a risky week and a dropping month for the key averages amid a unfavourable combine of stories associated to tariffs, inflation and the economic system.
The declined roughly 1% for the week and 1.4% in February. The tech-heavy misplaced about 4% for all of February, its worst month-to-month decline since April 2024. In the meantime, the blue-chip managed to outperform, rising about 1% throughout the week. Month-to-date, nevertheless, the 30-stock index dropped 1.6%.
Supply: Investing.com
The week forward is anticipated to be one other eventful one as traders react to President Donald Trump’s aggressive tariffs. Trump’s 25% tariffs in opposition to Canada and Mexico will begin on Tuesday, together with an additional 10% tariff hike on Chinese language items.
Most vital on the calendar shall be Friday’s U.S. employment report for February, which is forecast to indicate the economic system added 156,000 positions. The unemployment fee is seen holding regular at 4.0%. That shall be accompanied by a heavy slate of Fed audio system, together with Chairman Jerome Powell.
Supply: Investing.com
And whereas the earnings season is drawing to an in depth, a variety of noteworthy reviews are due, together with Broadcom (NASDAQ:), CrowdStrike (NASDAQ:), Costco (NASDAQ:), Goal (NYSE:), Greatest Purchase (NYSE:), Macy’s (NYSE:), Kroger (NYSE:), and JD.com (NASDAQ:).
No matter which course the market goes, under I spotlight one inventory prone to be in demand and one other which might see recent draw back. Keep in mind although, my timeframe is only for the week forward, Monday, March 3 – Friday, March 7.
Inventory to Purchase: Costco
Costco, the Issaquah, Washington-based warehouse retailer, is poised to ship its fiscal second-quarter earnings after the U.S. market closes on Thursday at 4:15PM ET. Based on the choices market, merchants are pricing in a swing of 4.4% in both course for COST inventory following the print.
Latest optimism has been evident, with revenue estimates revised upward 15 instances within the weeks main as much as the report—in comparison with solely 5 downward revisions, in keeping with InvestingPro. 
Supply: InvestingPro
Regardless of the financial headwinds affecting retailers, Costco appears set to beat expectations because the membership-based warehouse membership advantages from a shift towards frugal shopper spending amid the present financial backdrop.
Analysts challenge that Costco will earn $4.08 per share, representing a 4.1% enhance from final yr’s EPS of $3.92. Moreover, income is forecast to climb 9.9% year-over-year to $63 billion, pushed by robust grocery gross sales and favorable membership traits.
These encouraging indicators recommend that Costco’s disciplined enterprise mannequin, loyal buyer base, and strong membership program proceed to generate resilience and development even in unsure instances.
Identified for its big selection of high-demand merchandise—from groceries and family necessities to electronics and attire—Costco has managed to carve out a distinct segment for itself by catering to value-conscious customers.
Supply: Investing.com
COST inventory ended Friday’s session at $1,048.61, just under a report excessive of $1,078 reached on February 13. With a market cap of $465 billion, Costco is the world’s second most precious brick-and-mortar retailer – behind Walmart (NYSE:). Costco has stood other than different retailers this yr, with shares rising 14.4% thus far in 2025.
InvestingPro’s AI-powered quantitative mannequin charges Costco with a ‘GOOD’ Monetary Well being Rating of two.94, indicating strong operational stability and monetary administration.
Remember to take a look at InvestingPro to remain in sync with the market pattern and what it means in your buying and selling. Subscribe now and place your portfolio one step forward of everybody else!
Inventory to Promote: Foot Locker
In stark distinction, Foot Locker (NYSE:) is about for a difficult week forward. The New York-based sportswear retailer, which focuses on sneakers and athletic attire, is anticipated to report its This fall monetary outcomes forward of the market opening on Wednesday at 6:45 AM ET.
Market members count on a large swing in FL shares following the print, with the choices market pointing to a doable implied transfer of 16.2% in both course. Analyst sentiment is overwhelmingly bearish with 16 downward revisions and no upward changes within the weeks previous the report.
Supply: InvestingPro
The outlook for Foot Locker seems dim because it grapples with a troublesome financial atmosphere characterised by excessive inflation and shrinking disposable earnings, resulting in slower shopper demand for discretionary gadgets.
The corporate is forecast to earn $0.72 per share, whereas income is anticipated to say no by 2.5% year-over-year to $2.32 billion. These figures replicate the mounting pressures on Foot Locker, as customers tighten their belts and competitors intensifies.
Wanting forward, the retailer’s administration is anticipated to disclose delicate revenue and income steerage for the present quarter amid slowing gross sales and compressing margins.
Ongoing shifts in shopper habits in the direction of on-line procuring and direct-to-consumer fashions have left Foot Locker in a precarious place. 
Supply: Investing.com
FL inventory ended Friday’s session at a 52-week low of $17.32, a stage not seen since August 2023. At present valuations, Foot Locker has a market cap of $1.6 billion. Shares, that are buying and selling under their key transferring averages, are down 20.4% year-to-date.
Remember that Foot Locker presently has a ‘WEAK’ InvestingPro Monetary Well being rating of 1.5 out of 5.0, reflecting operational challenges and monetary pressures.
Whether or not you are a novice investor or a seasoned dealer, leveraging InvestingPro can unlock a world of funding alternatives whereas minimizing dangers amid the difficult market backdrop.
Subscribe now and immediately unlock entry to a number of market-beating options, together with:
• ProPicks AI: AI-selected inventory winners with confirmed observe report.
• InvestingPro Honest Worth: Immediately discover out if a inventory is underpriced or overvalued.
• Superior Inventory Screener: Seek for the most effective shares based mostly on a whole lot of chosen filters, and standards.
• High Concepts: See what shares billionaire traders reminiscent of Warren Buffett, Michael Burry, and George Soros are shopping for.
Disclosure: On the time of writing, I’m lengthy on the S&P 500, and the through the SPDR® S&P 500 ETF (SPY), and the Invesco QQQ Belief ETF (QQQ). I’m additionally lengthy on the Invesco High QQQ ETF (QBIG), Invesco S&P 500 Equal Weight ETF (RSP), and VanEck Vectors Semiconductor ETF (SMH).
I often rebalance my portfolio of particular person shares and ETFs based mostly on ongoing threat evaluation of each the macroeconomic atmosphere and corporations’ financials.
The views mentioned on this article are solely the opinion of the creator and shouldn’t be taken as funding recommendation.
Observe Jesse Cohen on X/Twitter @JesseCohenInv for extra inventory market evaluation and perception.
