Quantitative Equity Research: Quant Driven Earnings Ideas – Stocks Poised for Earnings Surprises in August 2026

Research evidence excerpt

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Global Idea

August 5, 2026 04:30 AM GMT

Morgan Stanley & Co. International plc+

Quantitative Equity Research

Ronald Ho, CFA

Quantitative Analyst

Quant Driven Earnings Ideas –

Stocks Poised for Earnings

Surprises in August 2026

Stephan M Kessler

Quantitative Analyst

Morgan Stanley India Company Private Limited+

Rakhi Arora

Quantitative Analyst

In anticipation of the upcoming earnings reports from US and

European companies, we highlight stocks with the highest and

lowest Earnings Surprise Composite scores. Furthermore, we

integrate our fundamental analysts' stock ratings to adopt a

'quantamental' approach.

Morgan Stanley & Co. International plc+

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Key Takeaways

Quantitative Equity Research: Back to Basics:

Stephan Heller

Quantitative Analyst

Morgan Stanley MUFG Securities Co., Ltd.+

Ukyo Haraguchi, CFA

Quantitative Strategist

Earnings Surprise Composite detailed reports

We leverage signals from Earnings Forecast Landscape, Earnings Quality, and

Systematically Forecasting and Monetising

Broader Forecast Dynamics to derive the Earnings Surprise Composite.

Earnings Surprises – Part II (7 Mar 2025)

Since 2024, the live performance of our strategy has resulted in a pre-cost

Sharpe ratio of 0.96 for the US and 1.10 for Europe.

Quantitative Equity Research: Back to Basics:

Systematically Forecasting and Monetising

Earnings Surprises – Part I (19 Apr 2024)

Including five years ahead of launch, i.e. since 2019, our strategy has achieved a

QuantWise highlights research that incorporates

pre-cost Sharpe ratio of 0.68 for the US and 0.78 for Europe.

a robust quantitative approach in our

We assume no trading in the months where few stocks are expected to report

investment analysis.

earnings, hence no trading in September. The next round will refresh in October

2026.

Exhibit 1:

Top Pick stocks with top Earnings Surprise Composite scores

No. RIC

US

1

ADI.O

2

SNOW.N

3

TPR.N

4

TGT.N

5

MDB.O

6

OKTA.O

7

CAH.N

8

AVGO.O

Europe

1

ABNd.AS

2

ROCKb.CO

Company Name

Price

(LCL)

MS

rating

Earnings

Surprise

Composite

Percentile

Analog Devices Inc.

Snowflake Inc.

Tapestry Inc

Target Corp

MongoDB Inc

Okta, Inc.

Cardinal Health Inc

Broadcom Inc.

361.9

307.5

155.6

149.4

358.0

141.6

235.6

392.2

…