iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
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Morgan Stanley Sees Upside to Q3 Earnings

In a research note out by the pencil pushers at Morgan Stanley, they cite potential upside in Q3 earnings.

 

Could Q3 earnings results be a positive driver for the US equity market? The S&P 500 was down 7% last quarter, the worst fall in any quarter since Q3 2011. Q3 2015 earnings expectations have once again been lowered to the point where we would be quite surprised to not ultimately see aggregate earnings upside for the 27th consecutive quarter. With this decline in estimates, we expect reported results to show modest upside. The sample size is small, but earnings for the group of companies reporting as of October 5 generally have been above estimates. The market is following the typical pattern of rewarding companies that beat consensus revenue and earnings while harshly punishing revenue and earnings misses.

 q3
Here are their high conviction ideas.
HighConviction

Essentially, they believe expectations have been reduced, alongside the prices of equities, to a point where possible reward outweighs risk.

Trading accordingly.

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4 comments

  1. trashman

    Morgan Stanley is almost as gay as this new layout

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  2. ahadbi

    The Recent and Popular tabs are a great addition !

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