Morgan Stanley has identified Amazon, Apple, and Eli Lilly as some of the highest-conviction stocks to watch as second-quarter earnings season kicks off. The bank believes these stocks have high upside potential, especially for companies that can execute on margins in a challenging pricing environment.
In a note released on Thursday, Morgan Stanley highlighted the importance of companies meeting high expectations for the second half of 2024, as well as the potential for near-term catalysts to drive stock prices higher. Other stocks mentioned in the note include Coca-Cola, DraftKings, and MSG Entertainment, which are expected to see meaningful upside moves.
On the flip side, Morgan Stanley also sees downside risk for shares of Etsy and Logitech, among others. The bank’s analysis comes as investors navigate a market landscape that continues to be influenced by various factors, including earnings reports, economic data, and geopolitical events.
As the Nasdaq opens higher and the S&P 500 ends its longest streak without a 1% drawdown since 2020, investors are closely watching for opportunities and risks in the market. With jobless claims jumping to the highest level in nearly a year and the European Central Bank holding its key rate steady amid high inflation pressures, the market remains dynamic and ever-changing.
Overall, the stock market continues to be a mix of opportunities and challenges, with investors looking to navigate the landscape with caution and strategic decision-making. Stay tuned for more updates as the market continues to evolve.
