Here Are The 14 Stocks Morgan Stanley Wants You To Focus On During Q2 Earnings

Analysts at Morgan Stanley selected 14 stocks that have "high conviction" heading into earning season. The list was compiled on Monday, and the names selected have one or more "imminent events" that will "drive the share price materially over the next 15–60 days."

Here is the list:

Positive Near-Term View

1. BankUnited BKU: The analysts expect loan growth acceleration in the second quarter, and this re-acceleration isn't priced into the stock.
2. Concho Resources Inc CXO: The analysts are expected a 3 percent beat in its second-quarter sales volume and a 3 percent full-year fiscal 2016 guidance raise.
3. Hill-Rom Holdings, Inc. HRC: The analysts are expecting the company's strong momentum to continue in its North America division.
4. Lululemon Athletica inc. LULU: The Street's consensus estimate for 5.5 percent second-quarter comp appears to be beatable, and guidance for 120 basis points in gross margin improvement is conservative.
5. Microsoft Corporation MSFT: The company has three potential catalyst ahead: (1) a bounce back in the Server & Tools segment, (2) stabilizing gross margins and (3) continued operating expenditure discipline.
6. NXP Semiconductors NV NXPI: The analysts' second-quarter earnings per share estimate is 2 percent above the Street's consensus estimate.
7. Pfizer Inc. PFE: The analysts are expecting the company to earn $0.64 per share in the second quarter — 2 cents higher than the Street's consensus estimate.
8. Priceline Group Inc PCLN: The analysts are expecting the company's second-quarter adjusted EBITDA and earnings per share to come in 8 percent above consensus estimates.
9. Sherwin-Williams Co SHW: Investors are under-appreciating the company's gross margin outlook and same-store sales capacity for growth.

Related Link: Earnings Avalanche Puts Emphasis On Leveraged Tech ETFs

Negative Near-Term View

1. Gilead Sciences, Inc. GILD: Sales of HCV, a key driver of growth, are expected to fall $200 million below consensus estimates.
2. Nordstrom, Inc. JWN: The company could potentially slash its 2016 sales outlook and trigger a negative earnings per share revision.
3. Rackspace Hosting, Inc. RAX: The company has been experiencing slowing revenue growth, and its 25 percent exposure to the British currency affects its revenue guidance.
4. Relypsa Inc RLYP: Monthly Rx data suggests that sales of its only drug, Veltassa, could fall short of expectations.
5. United Natural Foods, Inc. UNFI: The company faces pressure across all of its major business segments.

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