Morgan Stanley's quantitative research team has identified four European stocks likely to beat earnings expectations this month, according to a recent note. The Earnings Surprise Composite model highlights Next, Prudential plc, Assicurazioni Generali, and Endeavour Mining as top performers based on forecast accuracy and earnings quality metrics.

Next leads the pack with a composite score at the 97th percentile, reporting on March 24. The UK retailer trades at £13,235 with a market capitalization of $21.6 billion and excels particularly in Broader Forecast Dynamics. Prudential plc, valued at $36.2 billion, ranks second at the 90th percentile ahead of its March 17 results. Assicurazioni Generali scores at the 84th percentile with a March 12 reporting date, while Endeavour Mining rounds out the list at 81st percentile, notable for a perfect earnings quality score.

The brokerage's strategy has delivered strong performance, posting a 19.0% return for Europe since January 2025. The model's pre-cost Sharpe ratio stands at 0.92 for Europe since its 2024 launch, demonstrating its effectiveness in identifying earnings beaters.