economy
January 26, 2026
Morgan Stanley’s top picks into earnings include AMD and Costco
Advanced Micro Devices and Costco will report earnings next Tuesday and Wednesday, respectively.
TL;DR
- Morgan Stanley identifies AMD and Costco as highest-conviction ideas for Q4 earnings season.
- 75% of S&P 500 companies reporting by Jan. 23 exceeded earnings estimates, with 69% surpassing revenue expectations.
- Morgan Stanley expects an above-average earnings beat rate for the S&P 500 in Q4.
- AMD is poised to benefit from a tight CPU market, especially in servers, and Intel's manufacturing limitations.
- Costco's sales and earnings are expected to reaccelerate, outperforming consensus estimates, particularly after lapping easier compares.
- Southwest Airlines' assigned seating rollout and potential for execution improvement are key investor watch points.
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