15 high-quality stocks to buy with healthy profits: Morgan Stanley

But Morgan Stanley's Mike Wilson worries there's weakness lying below the surface.Investors are neck-deep in earnings as second quarter reports roll in, and so far the news has been good, but not great.

According to Evercore macro research analyst Julian Emanuel, 54% of the S&P 500 had reported results as of Friday. By then, sales had risen 3.6% year-over-year, beating consensus estimates by 1.6%, while earnings were up 2.3%, also beating by 6.3%. In a note to clients from earlier in the week, Morgan Stanley chief US equity strategist Mike Wilson wrote that he anticipates earnings results will be better than Wall Street predicted. However, that has more to do with beating estimates that were lowered during the previous quarter, rather than the superior strength of balance sheets across the market.

"The bar for 2Q earnings has been lowered with 2Q growth estimates down 15% from 1Y ago and 3% lower in the previous 3 months," he wrote.Instead of worrying about which stocks will report strong earnings in the next few days, however, Wilson is focused on finding the companies with stable profits that will allow them to outperform well into the future.With the S&P 500 up nearly 20% year-to-date, it can seem like things are progressing smoothly for the market as a whole.

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

38 stocks to buy for strong earnings growth: Morgan StanleyMorgan Stanley: Buy these 38 stocks that will increase their profits during another better-than-feared earnings season
Source: BusinessInsider - 🏆 729. / 51 Read more »

Morgan Stanley's Slimmon names top tech stocks to buy after earnings seasonMorgan Stanley's Andrew Slimmon said there are reasons to be a 'little cautious' coming out of the busiest week for earnings.
Source: CNBC - 🏆 12. / 72 Read more »

Morgan Stanley's Slimmon names top tech stocks to buy after earningsMorgan Stanley's Andrew Slimmon said there are reasons to be a 'little cautious' coming out of the busiest week for earnings.
Source: CNBC - 🏆 12. / 72 Read more »

‘We Were Wrong’: Morgan Stanley’s Wilson Offers Stocks Mea CulpaLast year’s plunge in the S&P 500 made uber bear Mike Wilson the most celebrated stock forecaster on Wall Street. It’s a role he has failed to reprise in 2023.
Source: markets - 🏆 324. / 59 Read more »

Top Wall Street analysts are upbeat about these dividend stocksTipRanks analyst ranking service pinpoints Wall Street's best-performing stocks, including IBM and Morgan Stanley.
Source: CNBC - 🏆 12. / 72 Read more »

11 stocks that can survive lower inflation: Morgan StanleyMorgan Stanley: Lower inflation has an unusual downside for companies reporting earnings right now, but these 11 stocks will be able to survive and thrive
Source: BusinessInsider - 🏆 729. / 51 Read more »