• PCE inflation information, Fed audio system, Trump tariff information will likely be in focus this week.
• Lululemon’s robust model presence, revolutionary product strains, and efficient advertising methods place it favorably for a sturdy earnings report.
• Greenback Tree’s downbeat revenue and gross sales progress prospects recommend a extra cautious method, doubtlessly making it a inventory to promote.
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U.S. shares ended barely greater on Friday, with the key indexes averting a fifth straight week of losses, after President Donald Trump signaled “flexibility” on upcoming reciprocal tariffs.
For the week, the jumped 1.2%, the gained 0.5%, whereas the tech-heavy rose 0.2%.
Supply: Investing.com
The week forward is anticipated to be one other busy one as buyers proceed to evaluate the outlook for the financial system, inflation, rates of interest and company earnings amid President Trump’s commerce conflict.
Most necessary on the financial calendar will likely be Friday’s core PCE worth index, which is the Fed’s favourite inflation gauge. That will likely be accompanied by a heavy slate of Fed audio system, together with district governors Tom Barkin, Raphael Bostic, Neel Kashkari, and Alberto Musalem all set to make public appearances.
Supply: Investing.com
Elsewhere, on the earnings docket, there are only a handful of company outcomes due, together with Lululemon (NASDAQ:), GameStop (NYSE:), Chewy (NYSE:), McCormick (NYSE:), KB Dwelling (NYSE:), and Greenback Tree (NASDAQ:).
No matter which course the market goes, beneath I spotlight one inventory more likely to be in demand and one other which may see contemporary draw back. Bear in mind although, my timeframe is simply for the week forward, Monday, March 24 – Friday, March 28.
Inventory To Purchase: Lululemon
Lululemon, the Canadian athletic put on large, is making ready to unveil its fourth-quarter earnings on Thursday at 4:05PM ET. In line with the choices market, merchants are pricing in a swing of about 10% in both course for LULU inventory following the print. Shares gapped up 16.7% after the final earnings report got here out in December.
Famend for its revolutionary merchandise, robust model loyalty, and increasing market presence, Lululemon has lengthy been a favourite amongst each buyers and analysts. Latest optimism has been evident, with revenue estimates revised upward 26 instances within the weeks main as much as the report—in comparison with zero downward revisions, in response to InvestingPro. 
Supply: InvestingPro
The corporate is anticipated to report better-than-feared earnings and steering, pushed by a number of key elements. Consensus estimates name for Lululemon to ship This autumn earnings per share of $5.87, rising 11% from EPS of $5.29 within the year-ago interval.
In the meantime, gross sales for the interval are anticipated to extend 11.5% yearly to $3.58 billion because the athleisure maker loved a robust vacation purchasing season amid strong shopper demand for its yoga gear and sportswear.
Whereas buyers are bracing for weaker steering, it’s my perception that Lululemon’s administration will present a better-than-feared outlook for the present fiscal yr because it advantages from an improved stock method and promising fundamentals. Moreover, the corporate’s growth into new markets, each domestically and internationally, and its steady innovation in product strains and materials have broadened its enchantment, leveraging the rising pattern of athleisure.
Supply: Investing.com
LULU inventory ended Friday’s session at $322.62. Yr-to-date, shares are down 15.6%, underperforming the broader market over the identical timeframe. Lululemon has a market cap of round $39 billion, making it some of the precious athletic attire firms on the earth.
It must be famous that Lululemon demonstrates distinctive monetary well being with an general rating of three.06, incomes a “GREAT” ranking in response to InvestingPro metrics. The corporate notably excels in profitability with a formidable 4.35 rating. LULU additionally performs strongly in money stream technology (3.59) and progress metrics (3.47).
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Inventory to Promote: Greenback Tree
On the flip facet, Greenback Tree is bracing for a tricky week because it prepares to launch its fourth-quarter monetary outcomes on Wednesday at 6:30AM ET. The struggling low cost retailer has been navigating a number of damaging headwinds which have impacted its enterprise.
Market individuals count on a large swing in DLTR shares after the report drops, with a potential implied transfer of roughly 14% in both course as per the choices market. The Chesapeake, Virginia-based selection retailer operator’s margins are beneath strain, and an InvestingPro survey reveals that analysts have slashed their revenue estimates by over 20% previously 90 days.
Supply: InvestingPro
This bearish sentiment displays considerations about Greenback Tree’s capability to navigate the more and more aggressive low cost retail sector, particularly as shopper spending shifts in the direction of bigger, extra established gamers that provide higher offers and a broader product choice.
Greenback Tree is anticipated to put up a revenue of $2.20 for the fourth quarter, falling 13.7% from EPS of $2.55 within the year-ago interval. Income is seen inching down 4.7% year-over-year to $8.23 billion amid fierce competitors from retail giants like Walmart (NYSE:) and Amazon (NASDAQ:), in addition to Chinese language e-commerce platform Temu.
Trying forward, I count on that the retailer will present disappointing full-year gross sales and revenue steering as a result of powerful macro local weather. Greenback Tree’s adherence to its $1 worth level, whereas iconic, has change into more and more unsustainable within the face of inflation, limiting its capability to cross on prices to customers.
Supply: Investing.com
DLTR inventory closed at $66.75 on Friday. At present valuations, Greenback Tree has a market cap of $14.3 billion, making it the second largest U.S. greenback retailer within the nation after Greenback Common (NYSE:). Shares, that are buying and selling beneath their key shifting averages, are down 11% in 2025.
Not surprisingly, InvestingPro’s AI-powered quantitative mannequin charges Greenback Tree with a ‘FAIR’ Monetary Well being Rating of two.08, citing considerations over weakening revenue margins, spotty gross sales progress, and declining free money stream.
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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 Prime QQQ ETF (QBIG), Invesco S&P 500 Equal Weight ETF (RSP), and VanEck Vectors Semiconductor ETF (SMH).
I commonly rebalance my portfolio of particular person shares and ETFs primarily based on ongoing danger evaluation of each the macroeconomic surroundings and corporations’ financials.
The views mentioned on this article are solely the opinion of the writer and shouldn’t be taken as funding recommendation.
Comply with Jesse Cohen on X/Twitter @JesseCohenInv for extra inventory market evaluation and perception.
