Steve Strazza highlights stocks showing both fundamental strength and technical momentum.
The Daily Beat - November 20, 2025 π
November 20, 2025
Earnings season is the heartbeat of the market - and every day brings fresh signals about where money is flowing.
With each report, we learn not just how companies are performing, but how investors are reacting.
In the Daily Beat, we spotlight the most important S&P 500 earnings moves from the prior session - the winners, the losers, and the reactions that reveal what really matters to the market right now.
Whether itβs a bellwether with broad economic implications or a niche name making waves, we cut through the noise to focus on the setups that matter most.
Here are the latest earnings stats from the S&P 500 π
*Click the image to enlarge it
Wednesday was all about retail...
The top beat came from Lowe's Companies $LOW, a $128B home improvement retail stock. The company had mixed headline results, but shareholders were rewarded with a +2.94 reaction score.
In the report, they missed revenue expectations by a nose hair and beat earnings per share expectations by 9 cents.
At the bottom of Wednesday's list was the $21B specialty retailer, Williams-Sonoma $WSM. Following a double, the market punished shareholders with a -1.41 reaction score.
Target $TGT was another beatdown that caught our attention.
Now let's dive into the fundamentals and technicals π
LOW had its best earnings reaction since 2021 π₯
Lowe's had a +4% post-earnings reaction, and here's what happened:
Same-store sales were flat year-over-year, but online sales grew 11.4% over the same period.
Earnings increased by 5.9% year-over-year, driven by a 50 basis point improvement in gross margin.
The management team's forward guidance wasn't great, but the market was expecting worse.
In yesterday's Daily Beat, we highlighted Home Depot $HD and its horrific beatdown. The stock had its worst earnings reaction since 2002 after the management team issued worse-than-expected forward guidance.
The bar was set extremely low for LOW, which they leaped over with ease, and the market loved it. Shareholders were rewarded with the best earnings reaction in years.
And while the stock is still stuck in a massive range, it's not falling apart like its peer, HD. That's relative strength.
So long as LOW is below 264, the path of least resistance is likely to remain sideways for the foreseeable future.
TGT had its fifth consecutive negative earnings reaction π»
Target had a -2.8% post-earnings reaction, and here's what happened:
Sales declined by 1.5% year-over-year, but the bottom line was significantly worse - operating income cratered 18.9% over the same period.
The longtime CEO, Brian Cornell, delivered his final earnings call, highlighting the business's evolution and a focus on profitable growth under new leadership.
In addition to the terrible quarter, the management team said they expect sales and earnings to continue declining. They're also planning to increase capital expenditures by 25% next year, which isn't what the market wanted to hear.
This has been one of the largest disasters in retail for years, and nothing about that changed this quarter. If anything, the fundamental and technical deterioration is accelerating.
Mr. Market has punished the shareholders with one of the longest beatdown streaks in the S&P 500, confirming the negative fundamental and technical outlook.
The stock is on the cusp of resolving a massive top, which would likely lead to a further decline. Things don't look good for this name!
If TGT slips below 86, we expect a fresh leg lower.
Thank you for reading
-The Beat Team
P.S. If you want a clearer read on where this market is heading, you need to see Grant's report. It breaks down the internal signals driving this shift and what they mean for the months ahead.
