Morgan Stanley expects upcoming earnings releases to move sharply, as third‑quarter reporting gains momentum. Investors are monitoring corporate outlooks amid higher costs and AI‑related spending uncertainty. Of the roughly 10% of S&P 500 firms that have reported so far, only 41% have seen positive next‑day moves, suggesting a higher bar for beating expectations. Analyst Michelle Weaver notes earnings revisions breadth (ERB) for FY2 is +11%, down from a June peak of +28%, and that the early season is historically weak before improving. Growth expectations are +33% in 2026 and +16% in 2027, with consensus sales growth of 11% and 8% respectively. The firm identified 14 stocks with near‑term catalysts—12 with upside potential and two with downside risk.
Western Digital (WDC) is a top pick. Analyst Erik Woodring says expectations have reset too low after a 32% three‑month decline. He cites strong HDD demand and improved pricing, projecting a December‑quarter EPS about 10% above consensus and FY2027/28 results 15‑40% higher than Wall Street estimates. An overweight rating is given; earnings are due Thursday after the bell.
TeraWulf, scheduled to report on Nov. 6, is also highlighted. Analyst Stephen Byrd argues the stock is undervalued, pointing to high‑performance computing leases that generate nearly double the per‑share value implied by the price. The company’s track record in securing data‑center power contracts and building large‑scale infrastructure underpins an overweight rating.
Williams (WMB) benefits from AI‑driven electricity demand. Analyst Robert Kad forecasts roughly 16% annual EBITDA growth through 2030, exceeding guidance, and notes the firm’s turnkey power solutions can be delivered within 18‑24 months. An overweight rating is attached; the next earnings release is slated for Nov. 2.
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