Morgan Stanley: Earnings Growth Still Resilient Despite Revisions, Sees Potential in Select Stocks to Surprise Positively
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Morgan Stanley is calling for resilient Q4 earnings growth despite negative revisions recently. It sees mid-single-digit EPS surprises.
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Companies that beat earnings expectations last week only saw stocks rise 0.2% the next day, while those that missed got hit 5%.
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Morgan Stanley strategists are watching guidance and earnings revisions, which could determine if analyst pessimism continues.
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The firm identified 8 stocks across various sectors that could surprise to the upside this earnings season.
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Reasons for potential earnings beats include better demand trends, price increases, cost cuts, share gains, and more.