Analysts at Morgan Stanley said there’s still plenty of overweight-rated stocks to buy ahead of earnings as the reporting season wraps up. The firm says it’s sticking with stocks like Nvidia heading into quarterly reports. Other stocks Morgan Stanley likes include: EQT , Arista Networks and Tuya. Arista Networks Analyst Meta Marshall is standing by shares of the networking stock ahead of earnings on Tuesday. “[The] company has beaten revenue by ~300-400bps over the last 3-4 years, about in line with buyside expectations into the quarter,” she wrote. Still, Marshall said the fourth-quarter results are not likely to move the needle. “Further multiple expansion” is on hold until the company shows a meaningful amount of new customers, she added. The company does, however, having an underappreciated opportunity in the data center space. “Our checks were incrementally more positive on networking this quarter, with data center an area of focus and expectations of gradual improvement throughout the year,” she said. Arista shares are up 61% over the last year. EQT Buy any dip in shares of the hydrocarbon exploration company, according to analyst Devin McDermott. “The pullback creates an attractive entry point, with valuations now more compelling,” he wrote in a recent note. EQT remains a top pick at the firm ahead of earnings on Wednesday. The stock has risen more than 60% over the past 12 months, and is already up 16% year to date. McDermott said the stock’s recent choppiness is due to concerns around DeepSeek’s AI model, which has the potential to lessen power demand. The firm acknowledged that those concerns may persist, but says it still sees a buying opportunity. “Rising power consumption is a source of longer-term gas demand upside, but LNG [liquified natural gas] is a much larger near-term growth driver,” he wrote. “We continue to prefer gas over oil exposure within E & Ps and recommend buying the gas pullback,” he went on to say. Tuya Tuya shares are up a whopping 66% this year, but the firm says the China internet of things and AI company has plenty more room to run. The firm reiterated its overweight rating in a recent note clients, saying there is “strong revenue growth momentum” that’s likely to continue. However, analyst Yang Liu said there’s a “mismatch between fundamentals and share price,” urging investors to remain calm. “We think it leaves significant room for the share price to catch up with value,” she added. The firm acknowledged some tariff risk, but says there’s too many other positive catalysts to ignore right now. Liu also raised her price target to $3 from $2.30 with fourth-quarter earnings on deck on Feb. 26, which is the same day Nvidia reports its results. “The robust top-line growth is likely to be sustained by strong overseas IoT demand and Tuya’s market share gains,” she in her quarterly preview. Nvidia “While sentiment has worsened around potential longer term risks, near term business continues to firm, Blackwell supply visibility continues to build, customer desire to spend is clearly on display. … .We believe that NVIDIA should trade at a premium given its higher probability of upward revisions in the near term.” EQT “We continue to prefer gas over oil exposure within E & Ps and recommend buying the gas pullback. … .The pullback creates an attractive entry point, with valuations now more compelling. … .Rising power consumption is a source of longer-term gas demand upside, but LNG [liquified natural gas] is a much larger near-term growth driver.” Arista “Company has beaten revenue by ~300-400bps over the last 3-4 years, about inline with buyside expectations into the quarter. … .Further multiple expansion likely requires news of additional material customers or advancement on paused trials. … .Our checks were incrementally more positive on networking this quarter, with data center an area of focus and expectations of gradual improvement throughout the year.” Tuya “We reiterate our OW rating & raise our PT to factor in sustained strong revenue growth driven by overseas IoT & good cost control. … .The robust top-line growth is likely to be sustained by strong overseas IoT demand & Tuya’s market share gains. … .Strong revenue growth momentum to be sustained. … .Mismatch between fundamentals & share price. … .We think it leaves significant room for the share price to catch up with value.”
