Morgan Stanley picks out the biggest winners in this earnings season

Published Fri, Jan 18 20192:02 PM ESTUpdated Fri, Jan 18 20193:19 PM EST

As the earnings season continues to turn up big winners, Morgan Stanley offers a list of its best trading ideas. Earnings season kicked off this week as investors digested the first batch of numbers coming out of a slew of big banks. Fourth-quarter earnings are expected to be strong, with the Wall Street consensus seeing 14.7 percent growth. Morgan Stanley put together a list of out-of-consensus calls that will be big movers in this earnings season. 1. Anthem (ANTM) The bank is particularly bullish on insurer Anthem , which is slated to report earnings on Jan. 30. With the 12-month price target at $372, Morgan Stanley predicts Anthem will gain a whopping 40 percent. "We see tailwinds significantly outweighing headwinds heading into the 4Q print," the bank's Zack Sopcak said in a note on Thursday. "Historically, Anthem has grown in the high single, low double digit range, now we have visibility into accelerating growth." Shares of Anthem significantly outperformed the market last year, posting a 16.7 percent gain driven by strong profits and cost savings. The insurer in October reported third-quarter profit that beat Wall Street estimates and raised its full-year adjusted earnings forecast. 2. Take-Two Interactive (TTWO) Morgan Stanley believes Take-Two Interactive Software has the potential for the largest upward revisions of the gaming sector, with its $6 earnings per share forecast for 2020 being 16 percent higher than the consensus. "Take-Two is well positioned to continue seeing strong growth given its best-in-class content and a large, engaged and relatively undermonetized player base," said Brian Nowak said. The bank forecasts the game company's stock will reach $150 in 12 months, which would be a 39 percent gain from Friday's trading level. Take-Two had a brutal fourth quarter, with its stock losing more than 27 percent amid heightened market volatility. Take-Two reports earnings on Feb. 6. 3. Boyd Gaming (BYD) A healthy consumer in 2019 will continue to be a strong backdrop for the gaming industry, and Boyd Gaming is poised to be a big winner as it "takes outsized share of U.S. sports betting," Morgan Stanley's Thomas Allen said in the note. "First quarter of 2019 should benefit from record tax refunds, as regional gaming revenue did in 2002 and 2004. Separately, consensus does not appear to be fully appreciating recent acquisition benefits," Allen said. Boyd, to report earnings on Feb. 19, has seen its shares surging about 27 percent in the new year.

Traders and financial professionals work on the floor of the New York Stock Exchange (NYSE) ahead of the opening bell, January 4, 2019 in New York City.

Drew Angerer | Getty Images

As the earnings season continues to turn up big winners, Morgan Stanley offers a list of its best trading ideas.

Earnings season kicked off this week as investors digested the first batch of numbers coming out of a slew of big banks. Fourth-quarter earnings are expected to be strong, with the Wall Street consensus seeing 14.7 percent growth. Morgan Stanley put together a list of out-of-consensus calls that will be big movers in this earnings season.