Morgan Stanley Identifies 8 Stocks Likely to Deliver Earnings Surprises in Q2 Season

According to Morgan Stanley, as second-quarter earnings season begins this week (July 21-25), the firm identified eight stocks likely to deliver earnings surprises among its overweight-rated positions. The analysis reflects a market shift from AI-driven growth expectations to earnings performance, with sector rotation evident as technology stocks fell nearly 3% in June while industrials and healthcare rose 7% and 6% respectively.

The eight candidates are GE Vernova (NYSE: GEV), United Airlines (NASDAQ: UAL), Lam Research (NASDAQ: LRCX), State Street Corporation (NYSE: STT), Rollins (NYSE: ROL), American Airlines (NASDAQ: AAL), Bloom Energy (NYSE: BE), and International Flavors & Fragrances (NYSE: IFF). Each company faces near-term catalysts, from data center expansion driving energy demand to airlines sustaining pricing power amid higher ticket prices.