The Beat Report Articles

A few months ago, apparel manufacturers were left for dead. 

After Trump’s so-called Liberation Day, tariffs slammed into the industry, especially those with deep exposure to Asia. 

Vietnam, a core manufacturing hub for much of the apparel world, became ground zero for investor anxiety. Stocks cratered.

But after months of selling, the group is finding its footing. 

Now, with policy risk priced in and demand trends stabilizing, we’re finally seeing signs of life.

Many of these companies were caught flat-footed by the tariff spike, burdened by fragile supply chains and razor-thin margins. Gross margins collapsed as import costs ballooned. 

But a shift is underway.

Apparel manufacturers have been aggressively diversifying their sourcing strategies and pivoting toward direct-to-consumer (DTC) channels. These DTC models come with higher margins, better customer data, and more pricing power. 

Add in margin tailwinds from easing input costs and improving channel mix, and you’ve got the ingredients for a significant reversal.

That’s precisely what we’re seeing now, both on the charts and in the...

Welcome to The Weekly Beat.

Last week delivered powerful moves across several overlooked corners of the market — from hotel stocks quietly breaking out, to Canadian equities ripping to new highs alongside record Copper prices.

With S&P 500 earnings activity still limited, we’ve used this quieter stretch to surface the setups that matter most — names showing leadership, resilience, or quietly staging major reversals.

We’ll walk through the most important developments from the past week and spotlight a few earnings events that could set the tone as Q3 gets underway.

• Monday:
  • There weren't any S&P 500 earnings reactions, but the hotel industry continues to shine. The Hotel ETF $BEDZ is printing fresh multi-month highs versus the S&P 500, logging its first overbought momentum reading since November.
  • Marriott International $MAR is leading the charge. Last quarter, it delivered a double beat and snapped a 6-quarter streak of negative...

Delta Air Lines just delivered another blockbuster quarter. 

They reported the 3rd-straight double beat, and the market rewarded shareholders with one of the stock's strongest earnings reactions ever.

This is a reflection of a company firing on all cylinders.

The key drivers? High-margin premium cabins, a booming loyalty business, and industry-leading operational performance - even in the face of severe weather disruptions.

Their customer base is prioritizing experience over price, and it shows in the numbers. 

Revenue from premium and loyalty segments continues to climb, offsetting weakness in main cabin and off-peak travel. 

At the same time, cargo and maintenance operations are quietly contributing more to the top line.

This company is growing earnings, buying back stock, raising dividends, and executing at a high level - all in an industry that has been largely left for dead by investors.

If there’s an airline to bet on, it’s this one.

*Click the image to enlarge it

Delta Air Lines $DAL had a +3.54...

We told you this could be the one.

After two years of basing, Byrna Technologies $BYRN just delivered a massive fundamental catalyst to support the breakout we’ve been waiting for.

The stock is rallying in pre-market trading as the bulls look to secure a 3rd consecutive positive earnings reaction.

Their revenues surged over 40% year-over-year to $28.5M, slightly beating expectations, and net income climbed to $2.4M, far outpacing expectations. 

This marks the company’s strongest revenue growth since 2021, driven by a 106% increase in dealer sales, the launch of its Compact Launcher, and a strategic retail expansion that’s gaining serious traction.

Byrna Technologies has been coiling below a shelf of former highs, and after this double beat, a gap-and-go breakout looks more likely than ever.

In addition to the great quarterly report, the company is:

• Expanding into Sportsman’s Warehouse stores nationwide
• Partnering with...

Canada is having a moment, and it's not just about maple syrup and hockey.

With a market deeply tied to natural resources, the country is riding the wave of this year's powerful commodity rally. 

Copper futures just posted their biggest one-day gain ever. 

Gold is holding near all-time highs. 

And energy markets are heating back up. 

All of this plays directly into Canada's wheelhouse, with outsized exposure to miners, metals, and energy.

And now the charts are catching up.

The iShares Canada ETF just broke out to new all-time highs, completing a massive multi-year base. 

This marks the beginning of a new leg higher for Canadian equities.

One of our favorite ways to play it? Imperial Oil $IMO.

The $41B Canadian energy giant just snapped a streak of six straight negative earnings reactions with a strong report on May 2. 

Net income rose to $1.29B, free cash flow...

The restaurant industry has spent the last few years in the penalty box.

From labor shortages and rising food costs to tighter consumer wallets and increased delivery competition, the sector has been fighting an uphill battle.

Many operators were forced to pull back on growth, cut costs, and rethink their business models altogether.

However, things are now starting to change.

Fundamentals are showing signs of improvement. 

Cost inflation is stabilizing, digital and loyalty strategies are paying off, and the best-run brands are finding ways to operate more efficiently than ever.

Margins are expanding, traffic trends are improving, and free cash flow is back in focus.

This is starting to appear in the charts.

Our equal-weighted Beat Report Restaurant Index — which includes names like McDonald's $MCD, Chipotle $CMG, and Starbucks $SBUX — just broke above a multi-year downtrend line.

This is a textbook breakout after a prolonged bear market. 

With the index clearing key resistance, the path of least resistance now appears higher.

Many of these...

The hotel industry is quietly staging a comeback.

After years of disruption, travel demand is proving far more resilient than many expected, particularly in the premium and group segments.

Global RevPAR (Revenue per Available Room) continues to rise, driven by strength in international markets and the recovery of business travel. 

U.S. group bookings are tracking ahead of last year's pace, and international travel to the U.S. is on the rise. 

At the same time, industry leaders are expanding their footprints, consolidating brands, and building out robust loyalty programs to capture repeat customers.

All of this is happening while supply growth remains constrained by elevated construction costs and tighter financing, which supports pricing power for the incumbents.

Against this constructive backdrop, hotel stocks are beginning to show signs of relative strength.

The Hotel ETF $BEDZ just broke out to fresh multi-month highs relative to the S&P 500. 

After a nasty drawdown earlier this year, the Hotel ETF is putting the finishing touches on a textbook...

Welcome to The Weekly Beat.

Earnings season may be winding down, but we’re still finding plenty of valuable signals.

Last week provided us with fresh confirmation from a few key individual stocks and industry groups. We saw a blowout quarter from Nike, strength in homebuilders, and another strong reaction from Constellation Brands despite a headline miss.

But with the calendar thinning out, this week will be one of the quietest stretches of the season.

That gives us time to zoom out and reassess the biggest winners, strongest trends, and highest-probability setups heading into Q3.

In this week’s recap, we’ll walk through last week’s most significant moments. We'll also preview one small-cap earnings event we’re watching closely.

• Monday:
  • Nike $NKE reported a double beat and rallied over 15% for its best earnings reaction since 2021.
  • The women's basketball segment grew more than 50% for the fiscal year, and the management team issued better-than-expected guidance...

Constellation Brands $STZ is quietly separating itself from the pack.

We outlined it as the #1 earnings report to watch this week in The Weekly Beat. 

Despite reporting a double miss after the closing bell on Tuesday, the stock rallied following its latest earnings release. This marks the 2nd straight quarter of positive post-earnings price action. 

They're continuing to deliver consistent growth, strong margins, and solid free cash flow. 

This is a rare combination in a defensive sector facing pressure from inflation, shifting consumer preferences, and private-label competition.

While many of its peers are getting punished for lackluster results, the market is rewarding Constellation for reporting a double miss.

Beer remains the crown jewel of their portfolio, led by Modelo, now the #1 beer in America. 

Meanwhile, the premiumization of the wine and spirits business is helping improve margins and reposition the segment for long-term growth.

Management continues to reward shareholders through...

There weren’t any S&P 500 earnings reactions yesterday…

But we're seeing one of the most critical industry groups catch a major bid.

It’s been a rough stretch for the housing sector. 

Higher mortgage rates, affordability pressures, and sluggish demand have weighed heavily on homebuilders all year. 

As other cyclical sectors rallied, housing remained a clear laggard, offering investors little more than dead money.

But things are starting to turn.

The Homebuilders ETF is in the process of reclaiming its VWAP, which is tied to its all-time high. This is a critical level that has acted as resistance since early 2024. 

The price is also reversing the damage of a massive top by reclaiming the neckline.

If this breakout sticks, it could mark a significant inflection point for one of the market’s most unloved industry groups.

Within this industry group, the earnings reactions from one stock have recently impressed us.

PulteGroup $PHM.

The stock has been rewarded for 9 of its last 11 earnings reports.

There weren’t any S&P 500 earnings reactions yesterday…

But we did get fresh monthly and quarterly closing data, and one industry group is demanding our attention.

Cybersecurity.

This has become one of the most powerful secular themes in tech, and it’s only gaining momentum.

As digital threats become increasingly sophisticated, companies and governments are being compelled to invest heavily in protecting their data, systems, and users. 

From ransomware payouts to state-sponsored espionage, the battlefield is expanding, and the stakes have never been higher.

In today’s cloud-first world, there’s more surface area to defend than ever before.

This isn’t a cyclical trade.

It’s structural...

It’s global...

And it’s urgent!

The result? Cybersecurity is now one of the fastest-growing categories in enterprise IT.

Budgets are rising, and the revenue is sticky.

The opportunity set for leading cyber firms is expanding rapidly.

This is where real money will be made over the next decade.

Let’s break down the charts and highlight one stock that’s already starting to separate from the...

Nike $NKE just delivered a long-awaited victory, and Wall Street took notice.

The $104B athletic apparel giant posted a double beat and soared over 15%, marking its best earnings reaction since 2021. 

That rally also snapped a brutal streak of 4 consecutive negative reactions.

For months, the stock has been stuck in a downtrend, weighed down by concerns around bloated inventory, margin pressure, and lackluster growth in Greater China. 

This quarter signaled a meaningful shift.

Revenue came in stronger than expected, and gross margins expanded. This is a clear sign that Nike is regaining control of its supply chain and promotional strategy. 

Perhaps most importantly, the company highlighted improving demand trends across key geographies and product categories.

This wasn’t just a “less bad” quarter. It was a decisive step forward.

Management acknowledged past mistakes and laid out a clear path to profitable growth, with a renewed focus on core franchises, channel productivity, and cost discipline.

After a challenging period, Nike is starting to resemble its former self again. It's an iconic American brand...