There were no S&P 500 earnings reactions on Wednesday, but insurance stocks continue to stand out to us.
And there's one name in particular that we love.
Lemonade $LMND is a $6B property and casualty insurance company built from the ground up as a technology platform, not a legacy insurer.
Instead of relying on agents, paperwork, and manual underwriting, they use AI and automation to price risk, underwrite policies, handle claims, and scale customer acquisition with far lower friction than traditional incumbents.
The company operates across renters, homeowners, pet, and auto insurance, and its long-term edge is rooted in one thing: using data and software to turn insurance into a scalable, high-margin business.
That strategy is starting to pay off in a very visible way.
Fundamentally, Lemonade is showing accelerating growth alongside rapid improvement in unit economics.
In its most recent quarter, in-force premium surged to over $1.15B, growing 30% year-over-year, while gross profit more than doubled and margins expanded sharply.
Loss ratios continued to improve, operating leverage is kicking in, and the path toward sustained profitability is becoming clearer with each report.
It's becoming a growth-plus-efficiency story, and the market is responding accordingly.
You can see that clearly in the earnings reaction data.
Over the past five earnings events, Lemonade has been consistently rewarded by the market, with three significant double-digit reactions and two relatively muted yet constructive responses.
Most notably, on November 5, the company delivered its best earnings reaction in years, with the stock surging more than 34% in a single session.
This persistent positive feedback loop between fundamentals and price is now showing up clearly in the long-term chart.
LMND is trading at its highest level since 2021 as the price climbs up the right-hand side of a massive multi-year base.
After years of grinding sideways and frustrating both bulls and bears, the stock is now in a strong primary uptrend.
Momentum and relative strength are accelerating, and from a structural perspective, the setup suggests thereโs still significant upside before even approaching the prior cycle peak.
This is precisely what we want to see in a true fusion analysis setup: improving fundamentals fueling positive earnings reactions, which in turn drive a decisive technical breakout.
We expect LMND to remain a leader for the foreseeable future.
Stay safe out there,
-The Beat Team
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