As we wrap up the first quarter earnings season, I want to make sure everyone is receiving our new fusion research. We've spent the past few years compiling and analyzing a proprietary set of earnings sentiment data. It's been a bit of a passion project for Sam and I, and we couldn't be more excited to finally share our work. We've been doing this every quarter, tracking industry trends, and pinpointing stocks with the top earnings stories… and more importantly, the top earnings reactions. It's all about the reaction at the end of the day. It wasn't a good report unless the market agrees, right? So we're not just looking for stocks that beat earnings, we're looking for the ones that go up the most when they do. Companies that do this consistently end up being the best stocks for the long run. We built the Beat Report around this simple fundamental idea in order to help us find them. We're writing about earnings and the way stocks react to them every day in the Daily Beat. Sign up and get the ultimate earnings cheat sheet delivered straight to your inbox every morning. Here's a look at our weekend summary. This is everything you need to know about last week's earnings 👇 |
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Welcome to The Weekly Beat. Last week was packed with market earnings reactions.
We saw double beats, historic selloffs, and a $100B surge in market cap.
Investors were forced to separate strength from weakness.
And with several prominent names sitting at critical levels, the stakes are only getting higher.
In this week's recap, we're covering the key reactions from last week and previewing the setups we're focused on heading into next week. What stood out to us last week 👇 - Lululemon $LULU posted a double beat and slipped 19.8% in response to it. This was the worst earnings reaction since 2017.
- In Q1 2025, clinical testing revenue jumped 55% year-over-year, fueled by a record test volume. We expect the stock to continue climbing higher.
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- The timing couldn't be more interesting with this news hitting as both names approach key inflection points.
What we're looking forward to next week 👇 Before Tuesday's opening bell, we'll hear from Jabil $ JBL, a $19B industrial machinery stock.
They have been rewarded for 3 consecutive earnings reports, and we'll be watching closely for another strong quarter.
After Tuesday's closing bell, we'll hear from KB Home $KBH, a $3.75B homebuilder.
On Friday, the action heats up even more with earnings from Accenture $ACN, Darden Restaurants $DRI, Kroger $KR, and others.
There will be a lot to unpack here at The Beat Report.
We're most looking forward to the Lennar $LEN earnings report after Monday's close, and here's why.
The $28.5B homebuilding giant has suffered a nasty drawdown since peaking last September. LEN has been punished for 6 consecutive earnings reports |
Lennar is one of the largest homebuilders in America.
They've got scale, brand recognition, and a significant footprint across high-growth Sun Belt regions.
But lately, none of that has mattered.
The stock has been punished for six consecutive earnings reports and is in a nearly 50% drawdown.
Why?
Margins are compressing.
Pricing power is fading.
And buyers are pushing back in the face of elevated mortgage rates.
Even though demand has held up better than feared, the market is clearly skeptical about sustainability.
The stock carved out a massive topping pattern and broke below its long-term trendline earlier this year.
Price has been trending lower for months.
If LEN can reclaim the VWAP anchored to the all-time high and hold above it, the path of least resistance will shift from sideways/lower to higher.
This level is currently around $134.
But if it continues falling?
There will likely be a fresh leg lower.
Either way, this chart is approaching a major decision point.
We're watching closely. The intermarket implications? |
Homebuilders and Microsoft $MSFT (and Technology stocks broadly) have been dancing together for years.
MSFT recently reversed a massive top and is now printing fresh all-time highs.
Lennar is the 2nd largest component of the U.S. Home Construction ETF $ITB.
If it can stop falling and reverse higher after its earnings report, we'll closely watch its peers for a similar scoop-n-score reversal.
A recovery in the homies would be incredibly constructive for the bulls.
Will it happen?
Stay tuned to find out.
Thank you for reading.
The Beat Report Team |
Steve Strazza | Chief Market Strategist, All Star Charts |
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