Morgan Stanley, the investment bank, today released a list of 2021 "solid growth stocks.". The list contains 42 stocks, which Morgan Stanley believes will grow in 2021 through their respective strengths. Companies like alphabet, apple and Tesla are on the list.
"We believe that these 'long-term growth stocks' will lead to strong growth due to factors such as sustainable competitive advantage, product cycle, market share growth or pricing power," Morgan Stanley's equity research team said in an investment research report to clients
Some of the new viruses began to grow before danshiguan. These stocks must be classified as "growth" for 16 consecutive quarters, must achieve year-on-year revenue growth in the past 12 quarters, and are expected to continue to grow year-on-year in the two fiscal years after 2020.
In order to further narrow the scope of the list, Morgan Stanley only selects stocks rated as "overweight" or "holding wait-and-see" (limited to the ratings given by Morgan Stanley's own analysts), and tries to select stocks with "compound annual growth rate" and "profit expectation" higher than the industry average.
As one of the main beneficiaries of the new coronavirus epidemic, Morgan Stanley highlighted Amazon, saying its e-commerce business will perform well during holiday shopping. Morgan Stanley said Amazon was in a strong position to expand its compliance and transportation network.
"Amazon has a range of fast-growing, higher-margin businesses, including advertising, subscriptions and AWS cloud services ," Morgan Stanley analyst Brian Nowak said in a report. This allows Amazon to continue investing heavily in its core retail business while ensuring that profit margins continue to rise ."
In addition, Novak also praised Google's parent company alphabet. It is listed as a long-term growth stock because, as a leader in paid search, alphabet continues to benefit from the digital transformation of advertising budgets and non-traditional advertising budgets. This year, alphabet's share price is up more than 35%.
"Google also has youtube, the leader in online video advertising, and we expect the industry to maintain a 15% CAGR from 2019 to 2024, reaching $65 billion in the United States alone," Novak added
"2020 will be a turning year for Apple as the company has begun to demonstrate that a more diverse mix of hardware and services, together with loyal customers and increasing participation, will translate into long-term, not cyclical, growth," Hubert said
In the report, Morgan Stanley also talked about Equinix, a data center and hosting provider, and ProLogis, a real estate company. As the world's leading operator of hosted data centers, Equinix will continue to benefit from the long-term trend of IT outsourcing, Morgan Stanley said.
Regarding Prologis, Morgan Stanley analyst Vikramhotra (Vikram Malhotra) said :" Property owners like Prologis are and used to be the main beneficiaries of e-commerce trends ." Prologis is the world's leading investment management and business innovation company focused on logistics, real estate, infrastructure, finance and related technology.
Morgan stanley also highlighted tesla's lead in electric vehicle manufacturing, batteries and self-driving cars.
Adam Jonas (Adam Jonas), an analyst at Morgan Stanley, said :" Ultimately, Tesla's goal is' walking on both legs'. It can take advantage of its cost leadership in the field of electric vehicles and actively expand the user base. Over time, regular / high-margin service revenue, the proportion of revenue will be higher and higher. "We believe that services can drive the stock up ."
The list of "long-term growth stocks" includes: Apple (NASDAQ: AAPL); Tesla (NASDAQ: tsla); Amazon (NASDAQ: AMZN); alphabet (NASDAQ: Google); DocuSign (NASDAQ: docu); chess (NYSE: chwy); datadog (NASDAQ: ddog); Equinix (NASDAQ: eqix); Facebook (NASDAQ: FB); lulumelong athletica Inc. (NASDAQ: Lulu: Lulu), Inc. (NASDAQ: Lulu: Lulu: Lulu) Inc. (NASDAQ: Lulu: Lulu) Inc. (NASDAQ: Lulu: Lulu: Lulu: Lulu: Lulu: Lulu: Lulu: Lulu: Lulu: Lulu: Lulu: Lulu: Lulu: Lulu: Lulu: Lulu: Lulu: Lulu: Lulu: lulume: Lulu: Lulu: Lulu: Lulu: lulumelong ath, MasterCard (NYSE: MA); Microsoft (NASDAQ: MSFT); Netflix (NASDAQ: NFlx); ProLogis (NYSE: PLD) and salesforce (NYSE: CRM).