Is Lemonade Stock Set for a Big Squeeze After Earnings?Written by Ryan Hasson 
AI-powered insurance company Lemonade Inc. (NYSE: LMND) has quietly put together an impressive year, with the stock surging more than 60% year-to-date.
As it nears its upcoming earnings report, the stock is also forming what appears to be a bullish consolidation pattern, closing Thursday just 5.8% below its 52-week high.
With strong momentum, a potentially explosive technical setup, and high short interest, investors may be asking whether now’s the time to keep LMND firmly on their radar heading into year's end.
Reinventing Insurance With AILemonade has built its brand around simplicity, automation, and transparency—three qualities that have long been lacking in traditional insurance. The company offers renters, homeowners, pet, auto, life, and landlord insurance across the U.S., Europe, and the U.K., but what truly sets it apart is its AI-driven platform.
Instead of relying on traditional underwriters and brokers, Lemonade uses machine learning algorithms to automate everything from pricing and risk assessment to handling claims and customer service. That technology allows users to get insured in minutes and receive claims payouts in seconds.
The big question remains whether AI can consistently outperform legacy insurers in pricing risk. It’s a complex challenge that even established players struggle to master. Still, Lemonade’s ability to scale operations and grow its customer base rapidly suggests its model is gaining traction. For now, it remains a pure growth story that is still in the red but expanding aggressively to capture market share.
Strong Revenue Growth, But Profitability Still ElusiveIn its most recent quarter, Q2 2025, Lemonade reported a loss of 60 cents per share, easily beating consensus estimates of an 81-cent loss per share.
Revenue came in at $164.1 million, up 34.5% year-over-year and above Wall Street expectations. That’s been the recurring theme for Lemonade: strong top-line growth that consistently outpaces analyst forecasts.
Looking ahead, the company is set to report Q3 2025 earnings on Nov. 5, with analysts expecting a 72-cent loss per share and revenue in the $183–$186 million range. Investors will want to pay close attention to see if Lemonade can continue to narrow its losses while maintaining robust growth. Any upside surprise could spark a breakout, given the stock’s current technical positioning…and immense short interest.
A Bullish Setup With Short Interest as Potential FuelFrom a technical standpoint, LMND has spent the past three months consolidating between $50 and $62, with $62 marking a key resistance level. The stock is trading well above all major moving averages, a sign that the overall trend remains bullish.
The setup becomes even more interesting when sentiment is taken into account. As of Oct. 15, Lemonade’s short interest stood at 25.75%, equivalent to about 15.6 million shares sold short. With average daily volume near 2.4 million shares, that’s a significant overhang but also potential fuel for a short squeeze.
If the company delivers better-than-expected sales or a narrower loss in its following report, shorts could be forced to cover, driving a sharp upside move. A confirmed breakout above $62 could trigger momentum traders to pile in, amplifying any rally.
Bears Have a Case, But Price Action Favors the BullsThere’s no shortage of skeptics. Fundamentally, Lemonade remains unprofitable, and its valuation in relation to its earnings potential is difficult to justify. Analysts maintain a Reduce consensus rating on the stock, reflecting caution around its long-term profitability and execution risk.
But the price action tells another story. Despite bearish sentiment and heavy short positioning, LMND continues to hold near its highs, a sign of strong relative strength. In a market that’s rewarding stocks showing resilience and clear uptrends, Lemonade fits the bill.
For now, the stock is likely better suited to traders than to long-term investors. Those seeking exposure to high-growth, high-risk names with near-term catalysts may find LMND’s setup appealing. But for fundamental investors, confirmation will likely come only after the company proves it can turn scale into profitability.
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Caterpillar Stock Could Top $650 by Year’s EndWritten by Thomas Hughes 
Caterpillar’s (NYSE: CAT) stock will top $650 by year’s end because its solid growth is underpinned by AI demand. That’s right, Caterpillar, industrial giant that it is, is an AI play whose stock price uptrend has legs. Not only does this company use AI internally to improve operational quality, but it also provides AI-enabled services to its clients, and AI demand is driving the business.
Among the critical takeaways from the Q3 release is that the 9.3% revenue growth, nearly 500 basis points of outperformance relative to MarketBeat’s reported consensus, and the optimistic outlook are driven by a 17% year-over-year (YOY) surge in the Energy & Transportation segment.
Ironically, the billions of dollars earmarked for data center construction (and the energy infrastructure to support it) require someone actually to build them, and those builders rely heavily on Caterpillar equipment.
Caterpillar’s Stock Charts Indicate a Move Above $300 has BegunTurning to the stock price action, the Q3 results triggered a significant pre-market price surge, more than 5%. The takeaway from the chart is that this market, which has been trending strongly and recently entered a consolidation phase, has fired a continuation signal worth at least $100. Because $100 is the magnitude of the near-term rally—the most recent leg of a long-term uptrend—it is a low-ball estimate. Growth and an improving growth outlook drive the action today, but the cash flow and capital return drive the price action long-term.
Although the dividend yielded only 1.15% in late 2025, it is a reliable payment supported by a low payout ratio, an earnings growth outlook, and balance sheet health. The distribution growth rate and share buybacks improve its attractiveness.
The company is a Dividend Aristocrat, having increased its distribution for over 30 consecutive years. By late October, it experienced a 7% compound annual growth rate, with the latest rise matching this trend. While 7% isn’t a peak for the market, it roughly doubles inflation and is sustainable for this industrial sector.
Caterpillar is actively decreasing its share count through share repurchases. In Q3, this contributed to a 3.2% year-over-year and a 3.7% year-to-date (YTD) reduction, positioning it to achieve a similar 4.7% decrease as last year.
Looking forward, Caterpillar is unlikely to curb its buyback activity soon and is likely to continue reducing its count aggressively each quarter, providing significant leverage to its shareholders.
The cash flow also allows for equity gains on the balance sheet. The YTD activity in 2025 resulted in modest liability increases offset by asset gains and a 6% increase in shareholder equity, compounding leverage gains for shareholders.
Analysts and Institutions Buy Into Caterpillar’s Growth TrajectoryAnalyst and institutional trends align with Caterpillar’s share price advance outlook, including increased coverage, firming sentiment, a Moderate Buy consensus rating, and an uptrend in the price target. The consensus price target lags the market as of late October, but is up 45% in the preceding 12 months and nearly 12% in the preceding 30 days, with recent targets pointing to the $650 level.
In 2025, institutions have been purchasing this stock heavily each quarter, at a rate exceeding $2 worth of buying for every $1 sold, even during the early weeks of Q4. This creates a significant positive momentum for the price.
And the results? Good. Caterpillar grew its Q3 revenue by 9.3%, outperforming the consensus estimate by nearly 1000 basis points on strength in all categories.
While Energy & Transportation led, Construction grew by 7% and Resource by 2%. Regionally, Latin America is the weak spot, contracting by 1% in the quarter, while North America, European-African-Middle Eastern, and Asia grew by 8%, 6%, and 3% respectively.
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