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Morgan Stanley’s Updated Portfolio: Top Stock Picks that Outperformed the Market

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Morgan Stanley Adds Tech Giants to Top Stock Picks List

Morgan Stanley has included some of the biggest tech names on Wall Street in its list of top stock picks to hold for the next year. The firm’s “Vintage Values” list combines stock-picking fundamentals with quantitative analysis, according to analyst Michelle Weaver. In the past year, the list returned 19.49%, outperforming the S&P 500 by 9.41 percentage points.

High-Quality Stocks at a Lower Valuation

“The list has a bias toward high-quality stocks, yet it screens as less expensive than the market on almost all multiples-based metrics, especially key cash-flow-based valuation measure,” Weaver said.

Prominent Tech Gainers

Morgan Stanley has heavily focused on some of the most prominent tech gainers this year, including Nvidia and Microsoft.

  • Microsoft: The firm maintains an overweight rating with a $415 price target, implying about 26% upside from Thursday’s close. Weaver believes Microsoft is well-positioned to capitalize on growing artificial intelligence and cloud services adoption. Microsoft shares have jumped more than 39% year to date.
  • Nvidia: The stock is the best performer in the S&P 500 this year, soaring more than 217%. Morgan Stanley rates Nvidia as overweight with a $630 per share price target, which equates to roughly 36% upside from Thursday’s close. The analyst expects Nvidia to continue growing due to a strong data center segment.

Google Parent Company Added

Morgan Stanley has also added Google parent company Alphabet to its list. The stock is rated as overweight with a $155 per share price target, pointing to a gain of approximately 15%. Weaver believes Alphabet will expand its integration of AI platform functions into its Google search and YouTube segments, while improving confidence in long-term growth.

Amazon’s Growth in Cloud Services and Prime Membership

E-commerce behemoth Amazon remains on Morgan Stanley’s list. The firm has an overweight rating on Amazon with a $175 per share price target, about 27% above the previous close. Weaver highlighted the company’s growth in cloud services and Prime membership.

Source: CNBC’s Michael Bloom contributed to this report.

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