Welcome to another earnings Friday here at What My System Says Today.
Before I discuss “bullish” and “bearish” earnings for next week, I want to address the concept of net profit margin.
In simple terms, the net profit margin is the percentage of revenue remaining after all expenses have been deducted. It shows how much profit a company earns for every dollar of sales, including all costs such as production, overhead and taxes.
The higher the net profit, the more money a company keeps after paying all its bills.
When it comes to net profit, the S&P 500 has been doing quite well, collectively.
The blended net profit margin for the benchmark index in the third quarter of 2025 is 12.8%. That’s level from last quarter, but well above the five-year average of 12.1%.
It’s also the sixth consecutive quarter that the S&P 500 is reporting a net profit margin above its five-year average.
At the sector level, financials (19.9% vs. 18%) and utilities (16.7% vs. 14.8%) are leading in year-over-year increases in net profit margin. Communication services (13.8% vs. 14.8%) and real estate (34.3% vs. 35.2%) are leading in year-over-year declines.
Notably, according to FactSet, analysts project even higher net profit margins for the benchmark into the second quarter of 2026.
Now, let’s get into “bullish” earnings potentials for next week.
“Bullish” Earnings to Watch
These stocks are expected to beat their previous quarter’s earnings per share (EPS), and thus, 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.
Here are 10 companies that made this week’s list:
As I mentioned last week, there were significant quarter-over-quarter increases in earnings.
Leading last week’s list was Booking Holdings Inc. (BKNG), with a projected $68.29 increase in its EPS.
It turns out there was a reason for notice, as Booking Holdings reported EPS of $99.50, beating an already high estimate.
As a result, BKNG shot up 1.7% in midday trading the day after its earnings were reported.
So, it’s no shock that leading our list this week is Expedia Group Inc. (EXPE). The online travel company is projected to increase its EPS by more than $4.
Following Booking Holdings’ lead, I see Expedia Group matching or beating EPS expectations next week, which will lead to two things:
- A potential uptick in its stock price.
- An increase in Adam’s Green Zone Power Ratings system in the weeks ahead.
Now, let’s move on to potential “bearish” earnings next week…
“Bearish” Earnings to Watch
For our “bearish” earnings screen, we’re only looking for two things:
- 10 or more analysts must cover the stock.
- 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.
Here are 10 companies that passed this screen:
The interesting name on this list to me is Warner Bros. Discovery Inc. (WBD).
Although it does not impact the company’s earnings this quarter, Warner Bros. continues to move forward with its plans to separate its Warner Bros. and Discovery Global businesses into distinct entities.
The company recently announced it has started a review to explore alternative structures for the split.
Nonetheless, projections for WBD’s EPS this quarter are negative, which isn’t good news for the company or its shareholders.
If this comes to pass, expect downward movement of the stock on Adam’s Green Zone Power Ratings system in the weeks ahead.
I hope you all have a great weekend.
Until next week…
Safe trading,
Matt Clark, CMSA®
Chief Research Analyst, Money & Markets