European Stocks poised for earnings surprises in April

Seeking Alpha News (Fri, 04-Apr 9:00 AM)

Morgan Stanley analysts highlighted European stocks with the highest Earnings Surprise Composite scores.

These are stocks the quantitative equity research team believes will deliver positive earnings in the upcoming season, leveraging signals from their earnings forecast landscape, earnings quality, and broader forecast dynamics to deliver a composite score, Ronald Ho, quantitative strategist at Morgan Stanley.

Since 2019, this strategy has achieved a pre-cost Sharpe ratio of 0.68 for the selection of European stocks. Also, since 2024, the live performance of this strategy has resulted in a pre-cost Sharpe ratio of 1.89 for Europe.

The following are European stocks (NYSEARCA:IEUR) that are expected to report earnings between April 4 and May 2, that have an “overweight,” and that fall within the top two quintiles of the Earnings Surprise Composite scores.

  1. Barclays Bank (BCS) – Earnings surprise composite score: 1.00
  2. Adidas (OTCQX:ADDYY) – Earnings surprise composite score: 0.97
  3. Erste Group Bank AG (OTCPK:EBKOF) – Earnings surprise composite score: 0.92
  4. Societe Generale (OTCPK:SCGLF) – Earnings surprise composite score: 0.90
  5. Nordea Bank (OTCQX:NRDBY) – Earnings surprise composite score: 0.86
  6. Equinor ASA (EQNR) – Earnings surprise composite score: 0.84
  7. Santander (SAN) – Earnings surprise composite score: 0.84
  8. Smith & Nephew (SNN) – Earnings surprise composite score: 0.82
  9. Airbus SE (OTCPK:EADSF) – Earnings surprise composite score: 0.81
  10. Lloyds Banking Group (LYG) – Earnings surprise composite score: 0.79
  11. Deutsche Bank (DB) – Earnings surprise composite score: 0.78
  12. Barry Callebaut AG (OTCPK:BYCBF) – Earnings surprise composite score: 0.76
  13. EQT AB (OTCPK:EQBBF) – Earnings surprise composite score: 0.75
  14. Aena SA (OTCPK:ANYYY) – Earnings surprise composite score: 0.73
  15. AstraZeneca (AZN) – Earnings surprise composite score: 0.72
  16. Whitbread (OTCPK:WTBCF) – Earnings surprise composite score: 0.71
  17. SAP SE (SAP) – Earnings surprise composite score: 0.69
  18. Sartorius AG (OTCPK:SARTF) – Earnings surprise composite score: 0.61