Pedestrians in protective masks pass by Microsoft Technology Center in New York on Wednesday, July 22, 2020.
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Morgan Stanley believes that profits bottomed out in the second quarter, and the current reporting season offers good opportunities for buyers to buy.
Michael Wilson, the bank̵7;s chief US equity strategist, said the consensus on a 21% drop in S&P 500 revenue would be a big enough improvement to confirm that the second quarter was the lowest quarter for the cycle. According to Refinitiv, S&P 500 earnings fell 30.6% in the previous quarter.
The bank has identified 15 names that its analysts have high confidence in the transition to the income season. The firm’s analysts believe that one or more inevitable events will significantly affect the share price over the next 15 to 60 days.