Markets· August 16, 2026 at 02:44 p.m.
Morgan Stanley Identifies Quality Stocks, AI Adopters, Financials, and Consumer Discretionary Goods as Earnings Growth Opportunities
Key takeaways
- 87% of S&P 500 companies beat earnings expectations in Q2
- Median earnings growth for Russell 3000 companies is at its strongest rate since 2021
- Companies with strong free cash flow and operating efficiency are favored by investors
Morgan Stanley strategists led by Michael Wilson have identified opportunities in quality stocks, artificial intelligence adopters, large-cap financials, and consumer discretionary goods due to the broadening of U.S. corporate earnings momentum. The second-quarter results have reinforced Morgan Stanley's view that corporate profit growth is becoming increasingly broad-based, with 87% of S&P 500 companies beating earnings expectations this season, up from 82% during the previous quarter.
