Tuesday, December 30, 2025
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There were no S&P 500 earnings reactions on Monday, but we want to tell you about one of our favorite Latin American stocks. Sometimes, the most powerful signals in markets don't come from perfect earnings reports; they come from how stocks behave when the numbers aren't perfect. That's precisely what we're seeing right now in Cemex $CX, one of the largest and most important players in the global concrete and construction materials industry. Cemex sits at the heart of real-world economic activity. Every bridge, highway, data center, warehouse, and housing development needs concrete, and few companies have Cemex's scale, geographic reach, and operational leverage. It's a deeply cyclical business, which means sentiment can swing wildly at turning points, and when those turns happen, the price action tends to speak loudly. That's what makes the recent behavior in CX so compelling. After years of churning sideways and frustrating investors, the stock is suddenly being treated very differently by the market. In 2025, earnings stopped being a source of pain and started becoming a catalyst. If you look at the 2025 earnings reactions chart, the message is unmistakable: the stock was rewarded after every earnings report this year. |
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Several of those reactions were double-digit moves, and more importantly, all but one of them saw sustained upside follow-through rather than quick reversals. In other words, earnings are being used as entry points, not exit points. The most telling reaction came after the October earnings report. Cemex slightly beat revenue expectations but missed on the bottom line, yet the stock rallied sharply and continued higher. That's a textbook example of sentiment shifting. When investors reward a stock for posting mixed results, it tells us that Mr. Market is focused on the trajectory, not quarterly noise. Fundamentally, that optimism makes sense. Cemex has been executing on pricing discipline, cost controls, and balance-sheet improvement, particularly across its U.S. and European operations. Infrastructure demand remains resilient, margins are improving, and management continues to emphasize cash flow and capital efficiency, key drivers in a capital-intensive business. Now zoom out to the long-term stock chart, and the setup becomes even more interesting. |
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CX is pressing up against the upper bound of a massive base that stretches back decades. It's one of the most significant structural reversal patterns in the market. A clean breakout from this range would represent a major regime shift, turning a long-term consolidation into a new primary uptrend. Given the size of the base, the upside implications are significant, with the potential for the stock to meaningfully re-rate higher over time. When you combine consistent positive earnings reactions, bullish price behavior despite mixed results, improving fundamentals, and a long-term technical base nearing its resolution, you get a powerful Fusion Analysis setup. And it's precisely what we love at The Beat Report. Happy Technical Tuesday -The Beat Team |
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Editor's Note: Join Breakout Multiplier (Annual) and get a FREE quarterly membership to Project X, Steve Strazza's new fusion-analysis tool launching in January. Project X combines fundamentals, earnings sentiment, trend, and momentum to spot emerging leaders early. Join now and lock it in! |
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STAY HUNGRY. STAY FOOLISH |
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