There were no S&P 500 earnings reactions on Monday, but we want to tell you about an earnings reaction from last week that has our attention.
Last week, we discussed how the Lithium & Battery Tech ETF $LIT is entering a brand-new uptrend - the kind of structural reversal that precedes new multi-year bull markets.
Inside that group, the leaders are already making their presence felt. Amprius Technologies $AMPX has gone vertical - up more than 1,000% in the past year as its ultrahigh-density batteries find their way into EVs, aviation, and defense.
Now, another contender has stepped onto the main stage. Its name is American Battery Technology $ABAT.
This is a $450M battery recycler and lithium processor with a business that’s absolutely booming. In the last year alone, sales have surged by over 1,100% as the company ramped up operations at its first commercial recycling facility and began building out a vertically integrated supply chain, from scrap batteries to refined lithium for next-generation cells.
The latest earnings report, which was last Thursday, was a game-changer. Management exceeded revenue expectations by 133%, delivering $2.8M in sales - nearly triple the amount booked in the prior quarter.
Yes, they missed their earnings expectation, but the market didn’t care...
Shares ripped 23% higher in a single session for the best earnings reaction in company history, and the rally hasn’t slowed down since. Over the next two trading days, the stock tacked on another 25% as bulls piled in.
Here’s where it gets even more interesting:
Technically, American Battery Technology is pressing against a key level of interest. This price was support in late 2023, and resistance late last year and a few months ago.
If buyers can punch through here, we could be looking at the birth of a brand-new primary uptrend, just as fundamentals are inflecting in the company’s favor.
This stock is providing us with the kind of fundamental growth and technical setup that only occurs a handful of times each cycle.
This is how new leadership is born.
If and when ABAT closes above 4, the path of least resistance will decisively shift from sideways to higher for the foreseeable future.
Happy Technical Tuesday
-The Beat Team
P.S. Last night, Steve Strazza and JC Parets hosted the Mid-Month Strategy Session for All Star Charts. During the call, they delved into all things small-caps, such as American Battery Technology.
