Steve Strazza highlights stocks showing both fundamental strength and technical momentum.
The Daily Beat - December 5, 2025 π
December 5, 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 Thursday's list was the $27B discount store stock, Dollar General $DG. Following a double beat, shareholders were rewarded with a +5.80 reaction score.
Revenues came in $30M above expectations, and earnings per share beat by 35%.
We also saw several mixed earnings reports, leading to mixed reactions.
The market rewarded Hormel Foods $HRL and Salesforce $CRM, while Brown-Forman $BF.B and Kroger $KR were punished.
Now let's dive into the fundamentals and technicals π
DG had its fifth consecutive positive earnings reaction π₯
Dollar General had a +14% post-earnings reaction, and here's what happened:
Net sales rose by 4.6% year-over-year, but this report was about the bottom-line growth. Net income exceeded the management team's guidance, surging 43.8% year-over-year.
The company's gross profit margin improved by 107 basis points year-over-year to 29.9%. Price markups drove this.
In addition to the blockbuster report, the management team expects continued sales growth next year. They're also planning to invest $1.3-$1.4B in 450 new stores and remodels.
Dollar stores are red hot right now!
In yesterday's Daily Beat column, we highlighted a blockbuster report from Dollar General's largest competitor, Dollar Tree. Following a double beat, the stock had its best earnings reaction in years.
We expected DG to follow suit with a good report and reaction, but we didn't expect it to be this good.
The stock decisively resolved a textbook bearish-to-bullish reversal pattern, shifting the path of least resistance to the upside.
In addition, the stock extended its beat streak to five quarters. This is one of the longest in the S&P 500.
We expect the buyers to maintain control of DG for the foreseeable future.
CRM snapped a three-quarter beatdown streak π₯
Salesforce had a +3.7% post-earnings reaction, and here's what happened:
Revenue increased by 9% year-over-year, driven by a 330% increase in Agentforce's annual recurring revenue over the same period.
Free cash flow grew 22% year-over-year, enabling the company to return $4.2B to shareholders through share repurchases and dividends.
In addition to the solid quarter, the management team raised its forward revenue guidance.
We highlighted this report in the latest Weekly Beat column, noting that despite consistently beating headline expectations and growing the top- and bottom-line, the shareholders had been punished for three consecutive earnings reports.
This negative sentiment towards the company's earnings events confirmed the bearish technical trend.
After Thursday's earnings reaction, there's now a divergence between the fundamentals and technicals.
This may not be a massive top after all...
Until the bears knock CRM below 225, we have a neutral bias.
Happy Friday!
-The Beat Team
P.S. Save your spot for Tuesdayβs closed-door retail briefing with Macke. This session gives you access to his boots-on-the-ground consumer read, the kind normally reserved for members.
