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 earnings moves from the prior session - the winners, the losers, and the reactions that reveal what really matters to the market right now.
Whether it’s 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 👇
*Click the image to enlarge it
The $121B semiconductor stock, Analog Devices $ADI, had a +2.72 reaction score after reporting a double beat.
They reported revenues of $2.88B, versus the expected $2.77B, and earnings per share of $2.06, versus the expected $1.95.
The $45B discount store chain, Target $TGT, had a -2.68 reaction score after reporting a double beat.
They reported revenues of $25.21B, versus the expected $24.94B, and earnings per share of $2.05, versus the expected $2.04.
Lowe's $LOW was another notable report. They reported a double beat and had a muted reaction.
This came on the heels of its peer Home Depot $HD posting a miss/miss/pop earlier this week.
The reactions from HD and LOW are bullish for the home improvement and construction industries as a whole.
Now let's dive into the data and talk about the most important beats 👇
ADI has been rewarded for 5 of its last 7 earnings reports 🔥
Analog Devices rallied 6.3% after this earnings report, and here's what happened:
Revenues and EPS skyrocketed year-over-year by 25% and 32%, respectively.
They are making strategic investments in robotics, automation, and partnerships (e.g., Teradyne, NVIDIA), which are expected to drive long-term expansion.
In addition to the strong quarterly report, the management team issued better-than-expected forward guidance.
Of all the semiconductor stocks in the S&P 500, this was one of the best reactions we've seen all season.
We love how the market is consistently rewarding them for reporting earnings. It speaks to the strong underlying fundamentals.
Now, it's time for that to be reflected in the technicals...
If the bulls can follow through in the next few trading sessions, the price will put the finishing touches on a textbook multi-year accumulation pattern.
If and when ADI closes above 248, the path of least resistance will decisively shift from sideways to higher for the foreseeable future.
TJX has been rewarded for 6 of its last 7 earnings reports 🔥
TJX Companies rallied 2.7% after this earnings report, and here's what happened:
Revenues and EPS increased year-over-year by 7% and 15%, respectively. The EPS growth was above the upper-bound of their previous guidance.
Unlike many of their peers, tariffs are not a problem for TJX. This has opened the door for them to increase their market share.
In addition to the strong quarterly results, the management team raised its forward guidance.
While many apparel retail stocks are struggling because of tariffs, TJX keeps smashing the market's expectations.
The market is rewarding them for reporting earnings more consistently than almost all of its peers.
This is the leader.
The technicals are supportive of the strong fundamentals.
Price posted a textbook gap-n-go on the heels of this report, sparking a brand-new primary uptrend.
So long as TJX holds above 136, the path of least resistance is decisively higher for the foreseeable future.
Thank you for reading
-The Beat Team
P.S. Jeff Macke went live yesterday to break down what’s really happening in the consumer space.
He unveiled his Q4 playbook, introduced brand-new consumer indexes he built himself, and laid out how to separate the real winners from the pretenders.
If you want an expert consumer analyst to break down earnings reports like TJX for you, there's nobody in the world better than Jeff.
When it comes to retail, Macke’s track record speaks for itself. He’s been trading this space for decades - and with a Target executive for a father, he’s been immersed in the industry since childhood.
