Earnings season is in full swing. These are Morgan Stanley's highest conviction plays
Morgan Stanley expects a handful of stocks that are reporting quarterly results soon to see big gains. Here's the list
TL;DR
- Morgan Stanley predicts several stocks will experience significant moves following their third-quarter earnings reports.
- Investor focus is on corporate outlooks amid rising costs and uncertainty surrounding AI spending.
- Morgan Stanley identified 14 stocks with potential near-term catalysts for share-price movement.
- Western Digital is a bullish pick, with expectations of strong demand for hard disk drives and improving pricing.
- AI infrastructure play TeraWulf is expected to benefit from growing demand for data center power capacity.
- Williams is favored due to AI driving demand for electricity, with new data center power projects anticipated to support earnings growth.
- S&P 500 earnings revisions breadth (ERB) for FY22 is +11%, down from a previous peak.
- Earnings growth expectations are set at +33% for 2026 and +16% for 2027, with consensus sales growth of 11% and 8% respectively.