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\n \n Morgan Stanley analysts, led by Michelle Weaver, noted in a recent client communication that “the dearth of downward earnings revisions in the run-up into 3Q earnings suggests companies are already comfortable they can meet or beat expectations.” They also pointed out that stock-specific risk has surged sharply, reaching its highest level since 2020. This environment is seen as favorable for stock-picking as the peak of the reporting season approaches.\n <\/p>\n \n The analysts highlighted several stocks that could see substantial gains as earnings season progresses. Their top picks span a diverse range of industries, including software, social media, and airlines. Here are three of Morgan Stanley’s standout selections:\n <\/p>\n \n Morgan Stanley predicts that the software company’s stock is likely to rise due to increasing demand for its app development tools. Additionally, Atlassian recently announced its transition to cloud services by 2029, a strategic move expected to enhance the firm’s ability to monetize its expanding solution set. The bank has assigned an overweight rating to Atlassian, with a price target of $320 per share. Despite this optimistic outlook, the stock has seen a decline of over 14% in the past three months and approximately 31% since the start of the year.\n <\/p>\n \n Shares of the social media giant Meta Platforms are also seen as having significant growth potential, driven by increased user engagement and a robust advertising business. The analysts believe that Meta will continue to expand, particularly as it integrates several Graphics Processing Unit-enabled enhancements across its suite of applications, including Instagram. Morgan Stanley has an overweight rating on Meta, with a price target set at $850 per share. The company’s stock has already appreciated about 25% in 2025.\n <\/p>\n \n Southwest Airlines’ shares are positioned for growth as the airline undertakes a comprehensive overhaul of its operations, while Wall Street remains somewhat skeptical about the stock. The analysts noted, “Despite\/because of the stock performance, investor sentiment remains tactically cautious, which could push the stock even higher in the event of a beat + strong call\/guide.” Since September 2024, Southwest has implemented various strategies to enhance operational efficiencies, including reducing turnaround times and introducing red-eye flights to maximize aircraft utilization, alongside several cost-cutting measures. Morgan Stanley has set a price target of $38 per share for the airline stock, which has seen an increase of nearly 15% over the past year.\n <\/p>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":" Several stocks are set to experience significant rallies as companies continue to report their third-quarter earnings in the coming weeks, according to insights from Morgan Stanley. Major banks and other firms that have already disclosed their results have largely exceeded expectations in terms of revenue and earnings per share for the quarter ending September 30. […]<\/p>\n","protected":false},"author":1,"featured_media":3306,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[28],"tags":[],"class_list":["post-3305","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/posts\/3305","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/comments?post=3305"}],"version-history":[{"count":0,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/posts\/3305\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/media\/3306"}],"wp:attachment":[{"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/media?parent=3305"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/categories?post=3305"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/tags?post=3305"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n Several stocks are set to experience significant rallies as companies continue to report their third-quarter earnings in the coming weeks, according to insights from Morgan Stanley. Major banks and other firms that have already disclosed their results have largely exceeded expectations in terms of revenue and earnings per share for the quarter ending September 30. Notably, over 80% of the companies that have reported thus far have surpassed Wall Street’s estimates, as indicated by FactSet data.
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\n \n <\/p>\nAtlassian<\/h3>\n
Meta Platforms<\/h3>\n
Southwest Airlines<\/h3>\n