Morgan Stanley’s Top Stock Picks for Today
Morgan Stanley’s Strategy for Defensive Quality Stocks
Morgan Stanley is confident that buying high-quality defensive stocks is the best option for investors at the moment.
Despite the ongoing rise of the major US stock indices, the investment bank’s preference for defensive quality equities has been increasing since June.
According to Michael Wilson, Chief Equity Strategist for US Equities at Morgan Stanley, the recent spike in market volatility has left investors searching for direction.
Wilson believes that growth, rather than inflation and interest rates, is now the main concern for equity investors.
He still sees a soft economic landing as the base-case scenario.
Wilson suggests taking a more defensive stance in portfolios as interest rates continue to decline.
He has shared a list of high-quality defensive stocks and long investment ideas rated overweight by analysts among the top 1,000 market capitalization companies.
Additionally, Wilson has added three companies to the list of recommended stocks for purchase: Public Service Enterprise Group, AbbVie, and Northrop Grumman.
Top Stocks to Buy Today according to Morgan Stanley
Here are some of the best stocks to buy today, as recommended by Morgan Stanley:
- NOC – Northrop Grumman – Price on 13/08: $452.90 – Analysts’ average target price: $520.35
- LOW – Lowe’s – Price on 13/08: $231.07 – Analysts’ average target price: $250.31
- WMT – Walmart – Price on 13/08: $69.05 – Analysts’ average target price: $73.95
- TMUS – T-Mobile – Price on 13/08: $195.00 – Analysts’ average target price: $201.63
- MDT – Medtronic – Price on 13/08: $81.35 – Analysts’ average target price: $92.31
- CVS – CVS Health – Price on 13/08: $56.00 – Analysts’ average target price: $64.99
- ABBV – AbbVie – Price on 13/08: $188.16 – Analysts’ average target price: $196.09
- LLY – Eli Lilly – Price on 13/08: $893.98 – Analysts’ average target price: $988.64
- META – Meta Platforms – Price on 13/08: $519.23 – Analysts’ average target price: $568.41
- PEG – Public Service Enterprise Group – Price on 13/08: $80.51 – Analysts’ average target price: $80.97
AbbVie has been singled out as one of the top-quality defensive stocks by the investment bank.
The pharmaceutical company has been praised for its expanding drug pipeline, revenue growth, and earnings per share outperforming the sector’s average.
AbbVie is expected to shine in the biotechnology sector following the Federal Reserve’s interest rate cut.
Similarly, Northrop Grumman, a leading aerospace and defense company, is favored for its long-term visibility and stability.
Analysts consider the stock undervalued and recommend overweight ratings, citing the company’s strong free cash flow growth and the resilience of its nuclear US triad-related product portfolio.
Meta Platforms, a technology sector standout, has also made it to Morgan Stanley’s updated list of top stocks to buy.
The company’s micro-level innovation and growth drivers are expected to set it apart from competitors.
Despite some valuation concerns, analysts believe Meta is well-positioned to navigate uncertain economic times, thanks to advancements in artificial intelligence leading to increased user engagement and platform monetization.
Disclaimer
The information and insights provided in this article should not be the sole basis for investment decisions.
Investors are advised to exercise their judgment and take full responsibility for their investment choices based on their risk tolerance and time horizon.
The content is for informational purposes only and should not be construed as an offer or solicitation to the public for savings.
