These are Morgan Stanley's favorite stocks into earnings
As earnings season continues, Morgan Stanley picked out a handful of companies whose shares could rise after issuing their quarterly results. Fourth-quarter earnings should be strong, the firm said in a note to investors Thursday. However, companies are also likely to face tougher comparisons in the first half of 2022, as well as higher costs. "Ultimately, we think 2022 guidance provided on earnings calls over the next several weeks will inform the path of earnings revisions from here," Morgan Stanley equity strategist Michelle Weaver said in the note. "S & P 500 earnings are expected to rise 22% YOY during the fourth quarter; this marks a continued deceleration in earnings growth and what we believe is likely to be the last quarter of double-digit growth until the fourth quarter of 2022." Energy, technology and industrial sectors are expected to be big growth drivers, Weaver added. The firm's analysts picked several stocks whose earnings reports are expected to be positive catalysts that drive meaningful positive upside. Here are five of them: Morgan Stanley said it expects positive full-year 2022 topline and earnings guidance from Hostess and sees several positive catalysts in the near term for the stock. This includes better-than-expected fourth-quarter results, the announcement of a new CFO and the company's analyst day in March. The firm's price target on Hostess is $24, implying about 21% upside from its closing price Wednesday. Cloud security company F5 is also a top pick for Morgan Stanley. The firm is optimistic about F5's continued growth in software adoption and strength in hardware sales, the note said. Raymond James , investment bank Houlihan Lokey and industrial supply company W.W. Grainger are also among its favorites.

Hostess Twinkies and CupCakes are displayed on a store shelf on May 17, 2021 in San Anselmo, California. Justin Sullivan | Getty Images