Welcome to Extreme Investor Network, where we bring you the latest insights and analysis on the world of investing. Today, we’re diving into the latest fiscal results from some key companies as the earnings season heats up.
Morgan Stanley recently shared their perspective on several stocks with potential upside as earnings reports roll in. With about one-tenth of S & P 500 companies already reporting and another 20% set to release results next week, there’s plenty of action in the market.
According to equity strategist Michelle Weaver, consensus estimates anticipate S & P 500 third-quarter earnings per share to be up 3% year over year on a 4% year over year sales growth. Companies that beat both EPS and sales estimates tend to see positive price reactions, underlining the importance of strong performance across the board.
One standout pick from Morgan Stanley’s list is Eaton, with analyst Chris Snyder forecasting beats on all key performance indicators. With a strong set of secular drivers and potential for sustained high-single digit organic growth, Eaton is positioned for success. Snyder’s price target of $370 implies a 6% upside from Friday’s close, making it one to watch as they prepare to report third-quarter earnings on Oct. 29.
Another interesting opportunity highlighted by Morgan Stanley is Lineage, a four-time CNBC Disrupter 50 company that went public in July. Analyst Ron Kamden sees potential for mid-single digit growth rates and notes the company’s quality portfolio and tech platform. With a price target of $100 suggesting a 29% increase from Friday’s close, Lineage is expected to release third-quarter results on Nov. 6.
Lastly, tech giant Microsoft is facing some headwinds ahead of its fiscal first-quarter earnings report, according to analyst Keith Weiss. Concerns around capital expenditures, artificial intelligence revenue visibility, and gross margin compression have led to negative sentiment. However, Weiss sees potential for a turnaround post-earnings, with a $506 price target implying a 21% upside from Friday’s close. Microsoft is set to announce its fiscal first-quarter results on Oct. 30.
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