Steve Strazza highlights stocks showing both fundamental strength and technical momentum.
The Daily Beat - December 4, 2025 π
December 4, 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
At the top of Wednesday's list was the $23B discount store stock, Dollar Tree $DLTR. The company reported a double beat, and shareholders were rewarded with a +1.04 reaction score.
Revenues came in $50M above expectations, and earnings per share beat by $12 cents.
The cybersecurity giant, CrowdStrike $CRWD, was also rewarded for reporting a double beat.
After a slight top- and bottom-line beat, the stock had a +0.20 reaction score.
Now let's dive into the fundamentals and technicals π
DLTR had its best earnings reaction in 8 quarters π₯
Dollar Tree had a +3.6% post-earnings reaction, and here's what happened:
Net sales increased by 9.4% year-over-year, with comparable sales up 4.2% over the same period.
The company's adjusted EPS grew faster than expected, up 12% year-over-year, driven by 40 basis points of gross margin expansion.
In addition to the strong quarter, the management team expects continued top and bottom-line growth and margin expansion.
This company is executing its growth playbook flawlessly, and the market is loving it. That's why shareholders were rewarded with the best earnings reaction in years!
After a nasty drawdown last year, the stock has carved out a textbook bearish-to-bullish reversal pattern.
And after yesterday's move, the pattern is on the cusp of completion. A decisive resolution would mark the beginning of a brand-new primary uptrend.
We expect the buyers to maintain control of DLTR for the foreseeable future.
CRWD had its second consecutive positive earnings reaction π₯
CrowdStrike had a +1.5% post-earnings reaction, and here's what happened:
Annual recurring revenues hit a new all-time high, growing 73% year-over-year.
Free cash flow also hit a fresh record high of $296M. This is 24% of the company's total revenues.
In addition to the blockbuster earnings report, the management team raised its forward revenue guidance.
We highlighted this report in the latest Weekly Beat column, noting that the stock snapped a three-quarter beatdown streak last quarter after posting a double beat.
However, the company had reported negative bottom-line growth in back-to-back quarters. This is after a long stretch of extraordinary earnings growth.
And while the company returned to growing its bottom-line this quarter, the growth was underwhelming.
Given this context, it makes perfect sense why the stock had a muted reaction score.
The stock's long-term momentum is stalling out as the price approaches the apex of a well-defined rising wedge. We think it's setting up for a big move lower.
Because this is a high-growth name with a rich valuation, any growth scare is likely to result in a dramatic negative reaction.
We think CRWD is a bad risk/reward up here.
Thank you for reading
-The Beat Team
P.S. Every morning, Strazza highlights the cleanest technical patterns in the market. The ones with real potential to move.
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