Welcome to this week’s Friday earnings report from What My System Says Today.

Before I jump into “bullish” and “bearish” earnings potentials for next week, I want to take a look ahead.

We are nearing the end of the quarterly earnings season, which means analysts are already making buy and sell recommendations for the next quarter.

This is an interesting time because we get a forward look at how optimistic or pessimistic analysts are heading into the new earnings season.

Analysts Increase Buy Ratings

Of the 12,733 ratings on stocks in the S&P 500 Index, 58.2% are “buy” ratings, while 36.5% are “hold” and 5.3% are “sell.”

On a month-by-month basis, this marks the highest percentage of “buy” ratings since 2010. The percentage has been steadily climbing since July 2025.

From a sector perspective, the most optimism comes from the information technology and communication services sectors, with 68% and 64% “buy” recommendations, respectively.

Analysts are the most pessimistic about consumer staples (with just 43% “buy” ratings). Consumer staples also have the highest number of “hold” (47%) and “sell” (9%) ratings among the 11 S&P 500 sectors.

All in all, eight of the 11 sectors have seen an increase in their percentage of “buy” ratings, led by materials (up to 61.2% from 55.3%).

It shows that, despite recent market volatility, analysts remain optimistic about the overall direction of the benchmark index.

Now, before I get into “bullish” and “bearish” ratings for next week, I want to look back at an earnings call I made last week…

KBH Hits My Mark On Earnings

Last week, I called out KB Home (KBH) as one of our “bearish” earnings to watch.

Analysts expected the company to drop its earnings per share (EPS) by a full $1. Here’s what I said about those estimates:

Keep in mind that it is reporting its winter quarter, when home construction tends to slow due to weather.

So, it’s not entirely out of the realm of possibility that KBH comes in right at, or even slightly below, those expectations.

History shows that when KB Home does beat expectations, it typically isn’t by more than 7%. So, I am comfortable suggesting the company’s earnings will fall right on target with estimates.

I feel proud to say I was pretty close.

The company reported EPS of $0.52 — estimates were $0.55 — on $1.08 million in revenue… both missing expectations.

They missed their EPS projections by 5.5%… right in line with previous negative surprises.

I suspect this will affect KBH’s “Neutral” overall rating in Adam’s Green Zone Power Ratings system.

Now, let’s examine potentially “bullish” earnings for next week…

“Bullish” Earnings to Watch

These stocks are expected to beat their EPS from the previous quarter. And if those expectations are met or exceeded, they could potentially trade higher.

For this screen, stocks must meet four criteria:

  • 10 or more analysts cover the stock.
  • The average analyst recommendation is a “Buy.”
  • It BEAT analysts’ EPS estimates for the previous quarter.
  • The average analyst estimate for the current quarter’s EPS is greater than the previous one.

As we approach the end of earnings season, I expanded the screen to include companies not listed on the S&P 500.

Here are four companies that made this week’s list:

The one that stood out to me was PVH Corp. (PVH).

The company owns clothing brands like Tommy Hilfiger and Calvin Klein, which aren’t the most expensive, but aren’t the cheapest either.

Despite that, PVH forecast earnings growth, as both brands have experienced strong sales amid pressures from higher inventory levels and tariffs.

PVH has a strong history of surpassing earnings and revenue estimates — beating both in each of the last five quarters.

The trend shows that over the last three years, its best sales and earnings performance happens in the fourth quarter… most likely thanks to holiday season shopping.

I expect PVH  to come in right in line with, or slightly above, analysts’ estimates for this quarter.

That will certainly help bolster PVH’s “Bearish” overall rating on Adam’s Green Zone Power Ratings system.

As I mentioned before, we are nearing the end of the quarterly earnings season, with the next round beginning shortly.

When I screened for “bearish” earnings potentials for next week — for both the S&P 500 and all companies — I came up with zero.

As we approach the next quarter, that will certainly change.

That’s all from me today.

Until next time…

Safe trading,

Matt Clark, CMSA®

Chief Research Analyst, Money & Markets

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