Here’s a number you shouldn’t ignore: +2.1%.

That’s how much S&P 500 Index earnings per share (EPS) estimates climbed in the first month of second-quarter 2026 — and if you’ve been following earnings seasons over the past few years, you know that’s far from the norm.

Analysts Raise EPS Estimates in April

The first month of any given quarter has almost always been when the number-cutters get to work. We’re talking drops of -3.9%, -3.7%, -3.2%.

So, an upward revision isn’t just notable. It fundamentally changes the tone heading into earnings season… The analyst community is signaling more confidence in corporate America’s ability to deliver — and when estimates rise before earnings season kicks into full gear, it tends to create a more constructive backdrop for stocks.

It doesn’t guarantee smooth sailing, but it does shift the burden of proof. Companies aren’t just trying to clear a lowered bar; they’re being held to a higher one.

That’s a sign of genuine optimism, not sandbagging.

Now, with earnings season ramping up next week, let’s break down which calls have us feeling bullish — and which ones have us watching carefully.

“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:

  1. 10 or more analysts cover the stock.
  2. The average analyst recommendation is a “Buy.”
  3. It BEAT analysts’ EPS estimates for the previous quarter.
  4. The average analyst estimate for the current quarter’s EPS is greater than the previous one.

This week, I expanded beyond the S&P 500.

Here are 10 companies that made this week’s list:

 

The stock that stands out on this list is JD.com Inc. (JD).

This Chinese-based e-commerce company specializes in selling electronic products and general merchandise, including audio, video and books.

Analysts are projecting improved EPS this quarter thanks to heavy subsidies for its food-delivery business, a rebound in general merchandise sales and accelerated growth in its AI-enabled tools, such as the JoyAI model.

Over the last five quarters, JD has beaten EPS expectations in four quarters and sales expectations in all five.

The e-commerce market is strong, and that will lead to another beat for JD.

I see the company coming in above EPS and sales estimates this quarter, thanks to stronger sales and ongoing AI implementation.

A beat here for JD will certainly improve its “High-Risk” standing on Adam’s Green Zone Power Ratings system.

Now, let’s look at potentially “bearish” earnings for next week…

“Bearish” Earnings to Watch

For our “bearish” earnings screen, we’re only looking for two things:

  1. 10 or more analysts must cover the stock.
  2. The average analyst estimate for the current quarter’s EPS is less than the previous quarter’s.

We want companies that are covered by a sufficiently large group of Wall Street analysts who collectively expect the company to report a quarter-over-quarter decline in earnings.

And like the “bullish” screen above, I expanded the “bearish” screen beyond companies listed in the S&P 500.

Here are 10 companies that passed this screen:

 

On the other end of the Asian e-commerce spectrum is Alibaba Group Holding Ltd. (BABA).

Estimates suggest a slight downturn for this Chinese-based company.

One big reason is the company’s three-year capital expenditure plan on AI infrastructure and model development.

This massive spending plan will put pressure on the company’s margins and free cash flow.

History doesn’t help BABA either, as the company has missed EPS and sales expectations in three of the last five quarters.

I see BABA coming in right at or below analysts’ expectations this quarter, which will put pressure on the company’s already “bullish” rating in Adam’s Green Zone Power Ratings system.

Should be another fun week of earnings.

Until next time…

Safe trading,

Matt Clark, CMSA®

Chief Research Analyst, Money & Markets