Big tech earnings kicked off this week and investor reactions were mixed to say the least. Microsoft, despite beating top- and bottom-line expectations, suffered one of its largest one day drops in history. Apple reported record sales and beat expectations, but its stock hardly budged. Meanwhile Meta soared after beating expectations. The mixed and mysterious reactions to tech earnings underscore the precarious position of so many stocks and the tech sector, as we detailed in our recent Danger Zone report.

For many stocks, even the best earnings reports can’t justify the expectations baked into stock prices. In this situation, finding pockets of opportunity is not just about finding profitable companies – there are plenty of those – but companies trading at a valuation that underestimates future growth.

Finding stocks with strong profits and low expectations for future profits is increasingly difficult. And we’re about to get the largest data dump of the year as companies begin filing their annual 10-Ks.

Having access to AI proven to process this data and deliver superior fundamental research makes it easier though.

Every day during Footnotes Season, we process thousands of pages of financial reports. And, every day, we’ll update our models and alert clients if their stocks generate real profits or if their earnings are fake.

See below for all our research published this week.

New Long Idea:

With limited commodity exposure and a strong asset base, this company is well-positioned to benefit from sustained U.S. energy production. Importantly, this stock’s valuation gives the company no credit for its highly predictable cash flows and generous capital return history.

New Danger Zone:

Falling cash flows and rising debt make this sector look increasingly overvalued and land it in the Danger Zone this week.

Earnings Watch Parties

To give you an edge during earnings season, we uncover the truth behind each earnings report, and what it means for a particular company’s valuation. In the first watch party of this season, we discussed stock tokenization winners and losers, NFLX, IBKR, DHI, SCHW, and more. In yesterday’s watch party, we analyzed giants including AAPL, META, MSFT, V, MA, and more.

Style Rankings for 1Q26:

We published our Style Rankings report for 1Q26 and our best and worst ETFs and Mutual Funds reports for each individual style.

Featured Stock:

We featured a stock from our Safest Dividend Yields Model Portfolio. See how cash flows drive dividend safety in this latest update.

Model Portfolio Updates:

We updated our Dividend Growth Stocks Model Portfolio for January 2026.

Links to all our newly published research are below along with a preview for next week’s research.

We hope you had a great week!

Long Idea: High Yield, Low Drama

Danger Zone: Downgrading the Tech Sector and Its Misleading Earnings

Watch our Podcast on Stock Tokenization and Earnings Recap on NFLX, IBKR, DHI, SCHW, and More

Watch our Earnings Recap on AAPL, MSFT, META, TSLA, MA, GE, and More

Dividend Growth Stocks Model Portfolio Update for January 2026

Featured Stock from Our Safest Dividend Yields Model Portfolio

1Q26 Style Rankings

Best and Worst Style ETFs and Mutual Funds 1Q26

All Cap Blend

Large Cap Blend

Large Cap Growth

Large Cap Value

Mid Cap Blend

Mid Cap Growth

Mid Cap Value

Small Cap Blend

Small Cap Growth

Small Cap Value

1Q26 Style Ratings Recap

Upcoming Research