CoTD: Revision Hunting

Research evidence excerpt

CoTD: Revision Hunting

Idea

July 1, 2026 11:24 AM GMT

Morgan Stanley & Co. LLCMMulti-Industry | North America Christopher Snyder, CFA

Equity Analyst

CoTD: Revision Hunting Chris.Snyder@morganstanley.comBrandon Knutson +1 212 761-4470

Brandon.Knutson@morganstanley.com +1 212 761-4168

Chart of the Day (CoTD) highlights charts that tie into latest Toby Okwara

investor conversations, are timely for the macro + company EquityToby.Okwara@morganstanley.comAnalyst +1 212 761-1693

events, or just ones that we find interesting. Christine Yao

Research Associate

Exhibit 1: Screening for Conservative / Aggressive Guides: With Q2 positioned Christine.Yao@morganstanley.com +1 212 761-4193

for broad beats and 2H revisions the KPI this EPS season, we think the best Multi-Industry

screen is to compare the forecasted Q3'26 vs Q1'26 revenue ramp vs typical North America

Industry View Attractive

seasonality - a positive number means the business is modeled for a seasonal

beat (high bar) while a negative number means the business is modeled for a

seasonal miss (low bar)

Source: Morgan Stanley, Visible Alpha

Yesterday's CotD (link) highlighted that short-cycle leading indicators remain firm

through Q2, positioning our US multi-industry coverage for broad based beats

against conservative guides - but the bar gets tougher into 2H and with US

Industrials trading at a historic valuation premium, forward revisions are needed to

drive further equity upside (Exhibit 3-4). While we believe the premium is

warranted on the back of our long-standing $10T US Reshoring thesis which we

believe will result in stronger + more durable through-cycle growth for US

Morgan Stanley does and seeks to do business withIndustrials (link), the equities need to now prove it to the market w/ positive