Morgan Stanley has high conviction these stocks will be higher over the next 15 to 60 days

Published Tue, Apr 13 20218:09 AM EDTUpdated Tue, Apr 13 202110:14 AM EDT

Morgan Stanley has a list of stocks its analysts believe will outperform the market in the next few weeks as the companies report what's expected to be strong first-quarter earnings results. "Our analysts believe that one or more imminent events will drive the share price materially over the next 15-60 days," Morgan Stanley's team of analysts wrote. "For each of these stocks, our analyst has high conviction in a view that diverges from the Street's, and expects a near-term event to drive the stock as the market's view moves closer to ours." The firm's Chief U.S. Equity Strategist Mike Wilson predicts a 24.4% jump in earnings for the first quarter as a growing number of American firms recover from pandemic shutdowns that began one year ago. Wilson believes financials in particular will see a strong quarter and thinks the group will contribute over 40% of the S & P 500's growth year over year. The first-quarter earnings season begins in earnest on Wednesday, when Goldman Sachs, JPMorgan Chase and Wells Fargo are scheduled to disclose performance for the three months ended March 31. Results are expected to be positive in general as the rollout of Covid-19 vaccines and economic reopening foster better income and sales, as well as improved guidance. Among Morgan Stanley's high conviction stock picks are Lazard , Charles Schwab and Capital One . Analysts touted financial advisor Lazard with mergers and acquisitions "accelerating" across the U.S. and Europe and its modest year-to-date equity performance. They like the setup for Capital One thanks to forecasts for another positive credit beat and their view that the rest of Wall Street is too pessimistic on credit quality and capital return. But Morgan Stanley also likes consumer discretionary and internet names, and advised clients watch Amazon for another banner quarter. "We continue to believe the market is overconcerned about 'comping the comp' and potential consumer expenditure growth deceleration on AMZN as the world re-opens," the brokerage wrote. "We expect the stock to move on upward profit revisions based on AMZN's 1Q21 commentary and guide for 2Q21." — CNBC's Michael Bloom contributed reporting.

A man stands at the window of an office at a Capital One bank in New York City.

Johannes Eisele | AFP | Getty Images

Morgan Stanley has a list of stocks its analysts believe will outperform the market in the next few weeks as the companies report what's expected to be strong first-quarter earnings results.

"Our analysts believe that one or more imminent events will drive the share price materially over the next 15-60 days," Morgan Stanley's team of analysts wrote. "For each of these stocks, our analyst has high conviction in a view that diverges from the Street's, and expects a near-term event to drive the stock as the market's view moves closer to ours."

The firm's Chief U.S. Equity Strategist Mike Wilson predicts a 24.4% jump in earnings for the first quarter as a growing number of American firms recover from pandemic shutdowns that began one year ago.