EB Weekly Portfolio Report - Sunday, November 2, 2025

Tom Bowley - November 02, 2025

Special Note

18 of our portfolio stocks reported quarterly earnings last week and while the results were mixed, several of the market reactions were quite negative. Over time, we have benefited from many earnings gap ups that have contributed to our outstanding portfolio success since 2018. While it's frustrating, we occasionally have experienced more than our fair share of downside action. That was certainly the case last week.

We receive a lot of questions on whether to hold a stock into its earnings report. For purposes of our portfolio performance, and with very few exceptions, we treat our portfolio stocks as "buy and hold" for the entirety of the portfolio period and we do not place "stops" on our stocks, meaning that we will generally hold each stock through one earnings report. As mentioned below in our Portfolio Rules and Objectives section, we strive for consistency, transparency, and simplicity.

At this time, we are planning to hold all of our portfolio stocks through November 19th, at which time we'll hold our next draft to begin a new quarter with new stocks comprising our portfolios. We encourage our members to trade (or not trade) portfolio stocks as each member sees fit based on your own unique style and risk tolerance.

While a few portfolio stocks reacted quite bullishly to their earnings reports, like CLS, NVT, and AAPL, several others did not. I wanted to provide a quick chart review of those:

LRN

This was one of our worst reactions in the 7 years of portfolio performance. I find it particularly shocking as LRN was still in an uptrend and its relative strength remained intact. To top it off, LRN also beat both revenue and EPS estimates. However, there was a software glitch during a platform upgrade that resulted in the company missing 10,000-15,000 enrollments. They also lowered their growth forecast for 2026 and this combination resulted in the very poor market reaction. Companies that show little "cracks in the foundation" and then get dismantled with earnings reports usually take a long time to recover and for management to regain Wall Street's confidence. In my opinion, our best-case scenario here is for LRN to start to work its way back towards gap resistance near 85 to simply lessen the blow this quarter.

EBAY

EBAY also delivered strong results, beating both revenue and EPS estimates. The problem with investors was that EBAY revised its next quarter's earnings down from $1.39 to a range of $1.31-$1.36. Management cited the impact of tariff-related costs as reason for the estimate revision.

GRMN

This reaction seemed a bit harsh to me. GRMN did report quarterly revenues that were roughly 1% shy of estimates and its EPS only beat by a penny, but the company actually raised its full-year guidance. This is a strong long-term growth company, in my opinion, and I fully expect it bounces back in time. In the near-term, though, I'd watch for a possible reversal just a bit below 210, should it reach that level.
These 3 stocks were the hardest hit in each of our portfolios last week. The good news is that our Model Portfolio was up rather significantly vs. the S&P 500 this quarter heading into last week. Despite the poor performance last week, the Model Portfolio does still maintain a slight advantage over the S&P 500. The Aggressive Portfolio, while higher on the quarter, does now trail the S&P 500 by more than 2 percentage points.

We'll look for a rebound this week and hopefully get better reactions from the 8 portfolio stocks that will be reporting earnings this week.

Upcoming Earnings Reports

According to Zacks.com, the following companies will be reporting earnings this week and each is a component of one of our portfolios:

Monday, November 3: TDUP

Tuesday, November 4: AEIS, LDOS

Wednesday, November 5: MCD, DASH, MGNI

Thursday, November 6: TPR, LASR

Friday, November 7: None

PLEASE NOTE: The above companies were provided using Zacks.com earnings dates. We do typically hold our portfolio stocks through one earnings report, but every EarningsBeats.com member must make his/her own investing/trading decisions about holding stocks into earnings reports as it's the most volatile (risky) time to own a stock.

Portfolio Rules and Objectives

Here are the common traits and objectives of our portfolios:

Historically, there have been 10 leading stocks from up to 10 leading industries in each portfolio (at the time of selection). Generally, there will only be one stock per industry group, but there could be exceptions. Beginning with the August 2023 portfolios, we made changes to this strategy, specifically, allowing more than our traditional 10 equal-weighted stocks. We may include more than 10 stocks in each portfolio, with some weighted at 5% instead of 10% of the portfolio, if we choose to do so.
All stocks are typically held in our portfolios for an entire 90-day period, with no stops in place. We strive for consistency, transparency, and simplicity in our portfolios. EB.com members may hold these stocks for the entire 90 days, trade them, use stops, etc., but for purposes of our calculation, we typically make few exceptions to our "buy and hold for three months" strategy.
Every stock will generally be held through ONE earnings report.
The expectation is that relative winners will carry the portfolio to outperformance.
All portfolio stocks were announced on Tuesday, August 19th, and all were entered into as of the Wednesday, August 20th opening price - again, for our tracking purposes at EB.com.
Primary objective is to outperform the benchmark S&P 500 over time; quarter-to-quarter performance can be extremely volatile, especially if significant rotation takes place intra-quarter.

Here are several considerations for EB members:

The Income Portfolio should have the least amount of volatility as it will typically be comprised of quality large cap stocks with solid dividends; it also will typically underperform the S&P 500 during bullish periods as dividend-paying value stocks normally won't keep up with their growth counterparts.
The Model and Aggressive Portfolios should be viewed similar to very aggressive growth funds; they will typically have a lot of volatility and drawdowns can be significant from time to time.
The Income portfolio stocks will all pay dividends, with the expected average dividend yield to be at least 1.0%.
Drawdowns (losses) should be much milder on the Income portfolio, with more volatility expected on the other two; please review inception-to-date charts below to gain an idea of the volatility associated with each.
I believe the larger drawdown on the Income portfolio at the beginning of the pandemic was an anomaly, occurring as many defensive, higher-yielding companies uncharacteristically underperformed during a market decline.
Large drawdowns in the February through May 2021 and the November 2021 to February 2022 periods were due to the rapid rotation from growth stocks to value stocks; each quarter, our portfolios are based on themes and there is never a guarantee that our analysis and beliefs will be proven correct.
Consider owning or trading these stocks in whatever manner is most comfortable for you; while we will enter all stocks in the manner identified above, feel free to trade certain stocks or wait for pullbacks if the stocks are overbought.
We have no idea what risk each member is willing or able to take. We are not registered investment advisors so be sure you understand the risk you take. Please consult your financial advisor before buying or selling any securities.
EarningsBeats.com shareholders/employees may own all or some of the portfolio stocks from time to time.