With Q3 earnings season for big U.S. banks set to kick off in mid-October, Morgan Stanley analyst Betsy Graseck sees a potential opportunity for patient traders. In a new report, Graseck explained why the perfect time to buy big bank stocks could be coming soon.

Downward Revisions Coming

Morgan Stanley has a bullish outlook for U.S. banks in the longer term, but Graseck believes that traders should remain patient for now.

In her report, she reduced Morgan Stanley’s Q3 earnings estimates for the sector by about 10 percent. In addition, Graseck noted that she expects other firms to follow with EPS estimate reductions in the weeks leading up to earnings season, which will likely pressure bank stocks.

Earnings Themes

With 10-year treasury yields falling 0.32 percent in Q3, Graseck expects…

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