First Horizon is a financial services company that provides regional banking, mortgage lending, and wealth management. Over the past 60 days, the Zacks Consensus Estimate for its earnings has grown by 6.7%. It also has a dividend yield of 2.5%, which is higher than the industry average of 1.6%. Morgan Stanley delivers financial services to a wide range of clients, including businesses and governments. Its earnings estimate for this year has increased by 4.4% in the last 60 days, and it offers a dividend yield of 2.1%, significantly above the industry average of 0.9%.

TE Connectivity’s Earnings Growth

TE Connectivity creates and manufactures connectivity and sensor solutions for various sectors like automotive and aerospace. Its earnings estimate for the current year has risen by 4.3% in 60 days, and it features a dividend yield of 1.2%, while the industry average is just 0.0%. Zacks Investment Research provides investment tools to help with decision-making. It operates independently from the companies and assets mentioned, focusing on the risks involved in trading. It clearly states that no recommendations are made, and all investment decisions come with risks that should be thoroughly checked. The financial sector shows encouraging signs, especially with companies like First Horizon (FHN) and Morgan Stanley (MS). Both have seen upward revisions in their earnings estimates, indicating strength that the market may not fully recognize yet. This follows the Federal Reserve’s statement on January 14, 2026, about pausing interest rate hikes, which has brought some predictability to the sector. In this stable interest rate environment, the implied volatility in banking stocks has decreased from the highs we experienced during 2025’s uncertainty. Data from the fourth quarter of 2025 shows that many regional banks have finally stabilized their net interest margins, supporting a positive outlook on FHN. Therefore, selling cash-secured puts on these companies for February expirations might be a smart way to collect premiums while setting a potential entry point below the current market price.

Positive Trends in Technology Manufacturing

A similar trend of positive earnings revisions is appearing in technology manufacturing, led by TE Connectivity (TEL). The company is set to benefit from the rebound in global auto sales, which rose 3.1% in the last quarter of 2025, as reported by the Global Automotive Alliance. This indicates strong demand for its sensor and connectivity solutions. The latest manufacturing PMI data, released on January 5, 2026, showed a reading of 51.8, suggesting continued growth in the sector. This creates favorable conditions for industrial suppliers like TEL. Given this momentum, we might consider using bull call spreads to seize potential gains ahead of their earnings announcement next month. This strategy would limit our initial investment while taking advantage of the positive outlook. Create your live VT Markets account and start trading now.

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