By laksh5382 
Many stocks are seeing an uptick as Morgan Stanley announces its latest financial results. Earnings season is in full swing, with nearly one-tenth of the S&P 500 companies reporting in the past week. About 20% of the indexes plan to release results next week. The consensus estimate is for the S&P 500’s third-quarter earnings per share to rise 3% year over year on 4% sales growth, equity strategist Michelle Weaver wrote in a note Wednesday, which also includes team analysis. “If the 2Q pattern holds, companies will need to beat both EPS and sales to see a positive price reaction; companies that missed sales estimates last quarter performed more significantly worse.” Here are five of Morgan Stanley’s 10 highest-conviction plays that the firm sees as near-term catalysts for “a meaningful move” to the upside. Morgan Stanley sees a positive upside for Eaton and is predicting outperformance on all key performance indicators, including US organic growth and margins. “Eaton brings the strongest and broadest set of secular drivers in the U.S. industry, supporting the upcycle period and driving business continuity. [high-single digit] Organic growth,” analyst Chris Snyder wrote in the firm’s note. “Our broad organic growth build supports stable ~8% organic growth in 2025-26, approximately ~200 bps above consensus, which inspires [mid-single digit] “EPS is on the upside and argues for multiple extensions on continued strength,” he said. Their price target of $370 represents a 6% increase from Friday’s close. Eaton is set to report third-quarter earnings on Oct. 29. Meanwhile, four-time CNBC Disruptor 50 analyst Ron Kamden said Lineage, which went public in July, should deliver mid-single-digit same-store net operating income growth rates at the end of the year, a global leader in the temporary warehouse sector. The leader owns the highest quality portfolio and separate technical platform, he said, “We see a good entry point: bulls are waiting for a possible change in USDA data that could lead to margin improvement. [we] Expect in 4Q24 and 1H25; and (2) the potential for accelerated external growth,” he wrote in the note. Their price target of $100 suggests shares could rise 29% from Friday’s close. LineageOS is expected to release third-quarter results on Nov. 6. Ultimately, sentiment is “we’re seeing this build a ‘wall of worry,'” analyst Keith Weiss said in the first quarter of the fiscal year due to increased capital spending, a lack of visibility into artificial-intelligence revenues and fears of gross margin contraction. The stock may be working against a negative trend ahead of the quarterly earnings report, as we expect Q1 earnings to provide more visibility for Azure on the way to a bullish high-30% range in F2H. CoPilot adoption will ramp up significantly, and gross margin pressure will ease, his $506 price target is 21% higher than Friday’s close. is expected to announce its fiscal first quarter results on Oct. 30. — CNBC’s Sarah Min contributed reporting.