MarketMoodz
Morgan Stanley sees upside surprises from Western Digital, Citi, RTX in Q1 2026
Morgan Stanley's quantitative equity research team has tagged Western Digital, Citigroup, and RTX as the three stocks most likely to post upside surprises in Q1 2026. The note relies on Morgan Stanley's Earnings Surprise Composite, which ranks stocks by the odds of beating forecasts, with earnings dates flagged for investors.
Key Takeaways
- Western Digital sits at the 96th percentile in MS's Earnings Surprise Composite for Q1 2026.
- Citigroup sits at the 93rd percentile in MS's Earnings Surprise Composite for Q1 2026.
- RTX sits at the 81st percentile in MS's Earnings Surprise Composite for Q1 2026.
- Earnings dates: Western Digital on April 23, 2026; Citigroup on April 14, 2026; RTX on April 21, 2026.
People Involved
- No specific individuals mentioned
Entities Involved
- Western Digital Corp. (WDC)Tech hardware company
- Citigroup Inc. (C)Financial services firm
- Raytheon Technologies Corp. (RTX)Defense/industrial tech company
MarketMoodz Analysis
For investors, the MS call highlights three names with the highest odds of beating street forecasts in Q1 2026, potentially influencing sector rotations and hedging during earnings season. The Earnings Surprise Composite combines earnings-forecast signals, parity, and forecast dynamics to rank candidates, offering a data-driven edge in a crowded period for results.
Western Digital’s last reported quarter beat estimates, but the stock slid more than 10% the next day and then recovered about 16% over the subsequent two sessions, underscoring the volatility around memory names and the need to watch guidance and demand signals closely. RTX has faced a geopolitically influenced path since the U.S.–Iran developments, with its shares modestly lower versus late February, a dynamic investors should monitor as the cycle unfolds.
Citigroup’s expected $2.67 per-share on roughly $23.34 billion in revenue, and RTX’s $1.50 EPS on about $21.39 billion in revenue set the bar for consensus in Q1, providing a benchmark for the MS framework’s forecast-driven upside bets. The trio spans tech hardware, financials, and defense/industrial tech, illustrating how macro dynamics, guidance, and sector exposure shape earnings optimism.
Source: Original Article