Whereas Wall Avenue’s expectations are decrease this company earnings season, there are nonetheless a number of shares Morgan Stanley stated may rise within the close to time period. The beginning of subsequent week will mark the midway level of this earnings season, with nearly a 3rd of the S & P 500 constituents set to report their outcomes. Pharmaceutical names Merck and Pfizer are set to launch their earnings Tuesday, as is chipmaker Superior Micro Gadgets . Tech giants Amazon and Apple are additionally on deck to report that week. Morgan Stanley’s estimates for second-quarter earnings are down 9% yr thus far and flat gross sales development, which the agency attributes to lagged and elevated prices. The agency’s fairness strategist Michelle Weaver wrote in a Wednesday word that second-half earnings ought to speed up after the second quarter, with a rebound in 2024. “Latest steering highlights that demand weak point is beginning to present in sure pockets (notably in goods-oriented sectors), whereas providers oriented pockets have seen extra sturdy steering. On the similar time, some corporations are indicating a deceleration in pricing energy that, up so far, had helped offset increased prices,” she added. With this in thoughts, the agency screened for shares that it expects to drive upward on a near-term catalyst. Check out a few of the names, and the place analysts see them headed subsequent. Amazon is one in every of Morgan Stanley’s prime picks for this earnings season. The agency believes potential catalysts embrace constructive earnings revisions and its AWS Summit on cloud computing and generative synthetic intelligence. “We expect upward revisions to North America earnings, pushed by transport and achievement price per unit efficiencies, mixed with a extra sturdy shopper and a possible reacceleration of AWS income in 3Q/2H23 offers a positive backdrop as we head into the second half,” stated analyst Brian Nowak. He added that a number of appreciation and earnings revisions may drive the inventory upward. Amazon shares have popped greater than 50% yr thus far. The corporate is scheduled to report after the shut on Aug. 3. Yum Manufacturers , which operates restaurant chains together with Taco Bell and Pizza Hut, is one other one of many agency’s favourite names this earnings cycle. Analyst Brian Harbour is chubby on shares, citing its “engaging valuation” and powerful fundamentals relative to different giant franchised fast-food eating places. Harbour thinks a greater backside line within the second quarter and stronger gross sales traits ought to lead to much less threat of the corporate repeating its first-quarter miss . “We view YUM’s gross sales momentum, China restoration, sturdy growth outlook, management in expertise and publicity to rising markets as key drivers of the inventory. With pretty good visibility into 2H23/2024 earnings beneath its 98% franchised mannequin and franchisee well being sturdy, we consider threat reward skews favorably,” Harbour stated. The inventory has gained 7% in 2023. Yum is predicted to report on Aug. 2. Net growth platform Wix may see tailwinds from its current AI-coupled product bulletins, based on analyst Elizabeth Porter. “The mix of current underperformance, better-than-anticipated affect from AI, insider shopping for, stability in internet traits and achievable Q2 income steering for 11% development YoY (up from 10% in Q1 on a 4-point simpler evaluate), creates an undemanding set-up into the Q2 print, in our view,” Porter stated. Nonetheless, she famous that issues over the macro surroundings and longer-term issues over aggressive stress on AI have weighed down the inventory. Shares are up 11% yr thus far. Wix is about to report on Aug. 3. — CNBC’s Michael Bloom contributed to this report.