One cybersecurity leader still has a strong AI demand story, even if expectations are high. One athletic apparel name is dealing with weak North America sales, margin pressure, and a tougher full-year outlook, while one vertical software company is showing better revenue growth and a cleaner path to profitability. We’ll show you where the buy case still works and where to stay away.
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Futures at a Glance📈
Futures are leaning lower as tech weakness rolls into Friday’s session. The Nasdaq is taking the heavier hit after pressure in chips and Lululemon’s weak guide, while traders wait for the May jobs report to set the tone. The broader market is still holding near record territory, but this morning has more “prove it” energy than victory-lap energy.
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What to Watch
Earnings (Premarket):
• Sibanye Stillwater Limited [SBSW]
• ABM Industries Incorporated [ABM]
• G-III Apparel Group, LTD. [GIII]
• StealthGas, Inc. [GASS]
• Here Group Limited [HERE]
Economic Reports:
• Employment Report (May): 8:30 am
• Unemployment Rate (May): 8:30 am
• Avg Hourly Earnings, M/M% (May): 8:30 am
• Avg Hourly Earnings, Y/Y% (May): 8:30 am
• Consumer Credit (Apr.): 3:00 pm
Elite Trade Club Insider
$8 Million Sold Near The High, $2.1 Million Bought Near The Low
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Cybersecurity
CrowdStrike Holdings Still Has the AI Security Story, but Expectations Are High
CrowdStrike Holdings Inc (NASDAQ: CRWD) delivered another solid quarter, but the stock still slipped after the report. Fiscal first-quarter revenue came in at $1.39 billion, ahead of the $1.36 billion estimate, while adjusted EPS of $1.10 beat expectations for $1.07. Revenue grew 26% year over year, and the company swung to net income of $27.8 million after posting a loss last year.
The core thesis remains strong. CrowdStrike is benefiting from rising demand for cybersecurity tools as AI makes attacks faster and more sophisticated. CEO George Kurtz called the company “AI security infrastructure” and said AI detection and response is becoming a new growth vector.
The company’s second-quarter pipeline for that product has already topped $50 million, which gives investors something specific to track.
The issue is valuation and expectations. The stock is up more than 55% over the past year, trades near its 52-week high, and already reflects a lot of optimism around AI security demand.
CrowdStrike also announced a four-for-one stock split, but that does not change the business value. The company remains one of the strongest security platforms in the market, but it has to keep beating cleanly to support the multiple.
My Take For You: CrowdStrike still has one of the clearest AI cybersecurity growth stories, but the market is no longer giving it much room for merely “good” quarters.
My Verdict: Buy this. The risk is that the premium valuation gets hit if revenue growth keeps slowing or AI security adoption takes longer to scale.
Athletic Apparel
lululemon Athletica Is Still Searching for Its North America Fix
Lululemon Athletica Inc (NASDAQ: LULU) gave investors another difficult update, and the stock fell after hours. Total net revenue rose 4% to $2.5 billion, but comparable sales declined 2%, and North America revenue fell 3%, or 4% in constant currency. For a brand that used to be treated as a premium retail compounder, that is a clear warning sign.
China remains the bright spot. Mainland China revenue increased 30%, or 23% in constant currency, while rest-of-world revenue rose 13%. That international growth gives Lululemon some long-term support, but it is not enough to offset the weakness in its core North American market.
The company also reported a gross margin decline of 410 basis points, driven by tariffs and markdowns, which shows demand weakness is now flowing into profitability.
Guidance did not help. Full-year revenue is expected to come in between $11 billion and $11.15 billion, flat to down 1% relative to 2025, while full-year EPS guidance sits at $10.95 to $11.15. The stock looks cheap at roughly 9x earnings, but cheap retail stocks can stay cheap when comps, margins, and guidance are all under pressure.
My Take For You: Lululemon has international growth, cash, and brand value, but the North America slowdown and margin pressure are too big to ignore.
My Verdict: Avoid this. The risk is that weak North American demand and markdown pressure keep resetting earnings expectations lower.
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Vertical Software
ServiceTitan Is Turning Better Execution Into a Cleaner Software Story
ServiceTitan Inc (NASDAQ: TTAN) gave investors a stronger software update, and the stock moved higher after hours. Fiscal first-quarter revenue rose 25% year over year to $268.8 million, while EPS of -$0.24 beat expectations for -$0.29. Operating income came in at $40.8 million, with a 15.2% margin, showing the company is making real progress toward profitability.
The growth story remains focused on the trades market. ServiceTitan sells software to contractors and home-services businesses, and its platform helps manage scheduling, dispatching, payments, customer relationships, and operations.
That gives the company a practical vertical software lane rather than a generic SaaS story. Subscription and usage revenue drove the quarter, and management continues to expand the Max platform and AI capabilities.
There are still risks. Free cash flow was negative $9.6 million, though that improved from negative $22.3 million last year. Labor shortages in the skilled trades can also affect customer activity.
But the balance sheet looks solid, liquidity is healthy, and analysts expect the company to reach profitability this year. After a rough year for many software names, ServiceTitan is showing the kind of operating leverage investors want.
My Take For You: ServiceTitan is becoming a cleaner vertical software story, with growth, better margins, and a path toward profitability all moving in the right direction.
My Verdict: Buy this. The risk is that negative free cash flow persists longer than expected or trades-market demand slows.
Trivia: The New York Stock Exchange traces its origins to a simple agreement made by 24 stockbrokers in 1792. Where did they sign this famous agreement?
Movers and Shakers
Keel Infrastructure [KEEL]: Premarket Move: -9%
Keel is slipping after announcing a $350 million convertible note offering, with buyers also getting an option for another $58 million. The company plans to use the money for capped calls, general corporate needs, and data center expansion.
That sounds useful, but the market sees dilution risk first. After a massive run, investors are not going to ignore new convertible debt just because the data center story is hot.
My Take: Do not buy this dip yet. Keel needs to prove this raise turns into real data center growth, not just a bigger capital stack.
Argan [AGX]: Premarket Move: +12%
Argan is jumping after beating earnings and pointing to more project wins over the next 10 to 18 months. The Power segment drove the quarter, helped by strong execution, project completions, and better contract mix.
Backlog dipped slightly to $2.8 billion, but management is still talking about adding a handful of new projects. In this market, power construction tied to grid demand and data centers still gets rewarded.
My Take: Stay long. Argan is expensive, but execution is strong and the power buildout story still has room.
Cooper Companies [COO]: Premarket Move: +5%
Cooper is moving higher even after Mizuho cut its price target to $85 from $100. The key is that Mizuho kept an Outperform rating, and the new target still sits well above the current stock price.
The stock is near its 52-week low, down hard this year, and investors are watching for updates on the strategic review. If management gives the market a cleaner plan, this beaten-down setup can work.
My Take: Buy the weakness. Cooper is not exciting, but the valuation is washed out and the upside to analyst targets is still meaningful.
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Everything Else
💼 Dividend compounders are drawing renewed interest, as investors look for durable stocks that can keep rewarding shareholders through recessions, inflation spikes, and market swings.
🏈 Eli Manning is taking his private equity playbook into youth sports, where big money keeps chasing little leagues.
🇮🇳 India’s so-called “cockroach” party is suddenly becoming a market story investors may not want to ignore.
📦 Amazon engineers are pushing back after the company’s AI data plans collided with fresh layoff concerns.
⚛️ Honeywell’s Quantinuum made its Nasdaq debut as quantum computing keeps gaining more investor attention.
🖥️ Data center operator Switch is reportedly chasing new funding at a $50 billion-plus valuation.
That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.
Best Regards,
— Adam Garcia
Elite Trade Club
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