Morgan Stanley says there’s a slew of stocks that have plenty more room to run following quarterly earnings. The firm named five overweight-rated companies more upside ahead. They include: Colgate-Palmolive , Netflix , O’Reilly , Philip Morris and Blackstone. O’Reilly The risk/reward is too attractive to ignore despite a mixed earnings report in late April, according to the firm. Analyst Simeon Gutman said he’s sticking with the stock. “It’s possible ORLY could deliver meaningful EPS upside if it is able to uphold its gross margin rates going forward in a tariff environment,” he wrote. Gutman urged clients to accumulate shares immediately, adding the auto parts retailer has the chops to withstand a bumpy macro. “ORLY should be better positioned to navigate the current tariff environment than most Hardline/Broadline retailers, given the sector’s pricing power combined with the company’s buying leverage,” he said. O’Reilly shares are up more than 14% this year, and Gutman raised his price target to $1,580 per share from $1,450. “Ultimately, as long as ORLY is taking share, the bull case remains intact,” Gutman concluded. Philip Morris Shares of Philip Morris are “heating up,” the firm wrote. Analyst Eric Serotta and team raised the tobacco giant’s price target to $182 per share from $156 following the company’s better-than-expected earnings report in April. “PM’s robust 1Q results and upside to consensus are an outlier in a highly challenging CPG [consumer packaged goods] environment,” he wrote. The firm said it sees “upside to estimates and defensiveness” and noted the stock is “deserving [of a] further re-rating.” Serotta said he’s especially bullish on the company’s portfolio of smoke-free products. The stock is up 41% this year. Netflix The streaming giant is also defensive and resilient, analyst Brian Nowak wrote following the company’s first-quarter earnings report in April. “We remain confident in Netflix’s ability to grow ARM [average revenue per member] (price) and scale up its advertising business in-line to ahead of estimates in ’25 – even if macro softens,” he wrote. Novak raised his price target on the stock to $1,200 per share from $1,150 praising the company’s steady results. “Netflix, as measured in quarters, is a predictable business,” he said. The firm also says Netflix has pricing power along with a competitive advantage that’s unmatched. “Our OW thesis on NFLX shares reflects our view that there is durable growth over many years built on nearly two hours of engagement per subscriber, and growing,” he went on to say. Shares are up nearly 28% this year. Philip Morris “Heating Up. … Raising estimates and PT from $156 to $182 following better than expected 1Q, with PM’s highest in CPG growth, upside to estimates, and defensiveness deserving further re-rating. … PM’s robust 1Q results and upside to consensus are an outlier in a highly challenging CPG [consumer product goods] environment.” Blackstone “BX best placed to navigate uncertain macro, w/ strength & breadth across the franchise. Private wealth momentum persists, private credit opportunities expand, and fundraising/ deployment activity accelerate. 1Q results showcase BX’s ability to lean in w/ $177b dry powder & propel LT earnings power.” Netflix “Netflix, as measured in quarters, is a predictable business. … We remain confident in Netflix’s ability to grow ARM [average revenue per member] (price) and scale up its advertising business in-line to ahead of estimates in ’25 – even if macro softens. … Our OW thesis on NFLX shares reflects our view that there is durable growth over many years built on nearly two hours of engagement per subscriber, and growing.” Colgate “Better than expected Q1 EPS reinforces CL is better positioned than peers, with FX flex/defensive mix/recent reinvestment/solid pricing power vs HPC [home and personal care] peers, driving better EPS visibility, and OSG [organic sales growth] expected to improve sequentially going forward as pricing builds and category growth recovers.” O’Reilly “ORLY should be better positioned to navigate the current tariff environment than most Hardline/Broadline retailers, given the sector’s pricing power combined with the company’s buying leverage. It’s possible ORLY could deliver meaningful EPS upside if it is able to uphold its gross margin rates going forward in a tariff environment.”
