Morgan Stanley believes these stocks have 'earnings driven upside'

Scott Mlyn | CNBC

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As investors and Wall Street analysts begin to focus more on 2021 earnings, some of the most beaten-down stocks will be poised to outperform, Morgan Stanley said in a note to clients. 

The bank created a list of stocks for clients where estimated earnings for the next 12 months are set to rise as the new year approaches, effectively finding companies that analysts and the market are likely to get more bullish on once there is more clarity on the third and fourth quarters. 

"We believe the best return opportunities lie in stocks where NTM [next 12 months] EPS estimates are likely to increase more than 10% over the next 3-4 months," the bank said in a note.