Morgan Stanley is updating its favorites list, adding some of the biggest technology names on Wall Street to the list of top stocks to own for the coming year. This update comes as analyst Michelle Weaver reorganizes her “Vintage Values” list. The company believes that the stocks listed in this category may offer significant opportunities for investors in the future.
‘Vintage’ Opportunities for Investors
Morgan Stanley’s “Vintage Values” list outperformed the S&P 500 index by 9.41 points last year, providing a return of 19.49%. Michelle Weaver has this to say about the list:
“The list has a bias toward high-quality stocks, but it screens as cheaper than the market on almost all multiple-based measures, especially on cash-flow-based valuation.”
Who Tops the List?
In Morgan Stanley’s updated list, the following companies stand out as top stocks for the coming year:
Keurig Dr Pepper (KDP)
Keurig Dr Pepper is a strong player in the consumer products sector. The company’s shares have the potential to continue growing next year.
Microsoft is known as a tech giant and has a strong stock performance. Michelle Weaver highlights the significant advantage of the company’s adoption of artificial intelligence and cloud services.
Nvidia has been one of the top-performing companies in the S&P 500 index this year. High demand for artificial intelligence and semiconductors supports the company’s growth.
Visa holds a leading position in the financial services sector. The company’s shares are expected to appreciate next year.
Amazon is a globally recognized e-commerce giant. Morgan Stanley emphasizes the company’s growth in cloud services and Prime membership.
Alphabet is known as the parent company of Google. The company continues to integrate its artificial intelligence platform functions into the Google Search and YouTube segments.
Target Prices and Potential Increases
Morgan Stanley analyst Michelle Weaver also provides target prices and potential increases for each of these companies. For example, she provides a 12-month average target price for Microsoft shares and potential returns.