Morgan Stanley likes these stocks heading into second-quarter earnings
Earnings season has kicked into high gear, and companies such as GE Vernova , Lam Research and United Airlines are poised to deliver positive profit surprises, according to Morgan Stanley. This week, 28 companies in the S & P 500 will report earnings, including the big banks out Tuesday. The beginning of earnings season comes as stocks remain within striking distance of their June all-time highs , with the broad-market index trading above 7,500 on Tuesday. Heading into earnings, Morgan Stanley screened for stocks that it rates overweight and that it expects to exceed estimates on key performance indicators. The Wall Street investment bank also screened for stocks expected to raise forward earnings guidance or to see higher revised estimates from analysts after posting their latest financial results in the coming weeks. Here are a few of the stocks that made turned up on the screen. GE Vernova Shares are likely to advance if GE Vernova issues a better-than-expected earnings forecast linked to its new gas turbine contracts, Morgan Stanley said. The stock has soared 64% year to date as widening artificial intelligence investment has stoked demand for energy infrastructure. Earlier this year, GE Vernova’s CEO told investors that it expects to sell out its turbine reservations through 2030. GE Vernova is also likely to benefit from other industry tailwinds, per Morgan Stanley. “The industrial backdrop continues to strengthen,” analyst Michael Wilson said Monday in a note to clients. “Capex is broadening beyond data centers … [and] reshoring progress suggests the U.S. industrial economy may be entering a sustained growth cycle as international production becomes more expensive than domestic.” GE Vernova is scheduled to report second-quarter results on July 22. United Airlines United Airlines could gain more ground following its upcoming earnings report, particularly if it issues a stronger financial outlook for the rest of the year, Morgan Stanley said. Shares of the airline are up 24% over the past three months as travel bookings have stayed robust despite flight disruptions and higher ticket prices linked to the Iran war. “Airline demand and booking intent remain healthy, with seven consecutive price increases absorbed without demand destruction,” the bank’s airline analyst wrote. “With oil prices moving lower, airlines are unlikely to roll back pricing, though sustained demand will remain the key test.” United Airlines is slated to release second-quarter earnings on Wednesday. Lam Research Lam Research is likely to rally following its earnings report, particularly if it issues a strong revenue outlook for the current quarter, according to Morgan Stanley. The semiconductor manufacturing equipment maker’s shares have more than doubled in 2026, growing by 102%, amid the AI boom. “AI demand remains robust with rising token prices and continued strength across the ecosystem despite recent market pullbacks,” the Morgan Stanley analyst said in a recent note. “New equipment orders are improving.” Lam Research is set to report earnings on July 29.
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