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Morgan Stanley Names Buy-Rated Global Stocks Expected to Outperform
Pharmaceutical Stocks Lead the Way
Morgan Stanley has identified several buy-rated global stocks that it believes will outperform the market. Specifically, the bank has highlighted three pharmaceutical stocks as buy-rated, including Novo Nordisk, the maker of weight-loss drug Ozempic. The analysts at Morgan Stanley expect Ozempic to drive an upgrade to guidance before the second-quarter results are reported on August 10. Additionally, the bank is positive on Grifols, expecting a solid performance, and Indivior, which is anticipated to have a strong quarter.
Other Buy-Rated Stocks
In addition to pharmaceuticals, Morgan Stanley has selected other companies for its buy list. Deutsche Telekom has received a buy rating due to its improved outlook resulting from better trends in the US and Germany. Entertainment company Scout24 is also on the bank's buy list, with the bank favoring its steady subscription revenues. Furthermore, French materials manufacturer Saint-Gobain is a pick by Morgan Stanley, as consensus has not yet reflected the company's management's optimism on margins discussed at its annual general meeting.
Energy Company RWE
RWE, an energy company, has been named as an overweight choice by the Morgan Stanley analysts. They expect to see earnings-per-share upgrades in the future. Overall, the analysts believe that reporting seasons in the post-COVID era have seen positive surprises. While they expect another positive beat ratio for the second quarter of 2023, they caution that a slowdown in global and European economic momentum may result in a more normal level of the beat.
By identifying these top buy-rated stocks, Morgan Stanley aims to provide its investors with potential opportunities for market outperformance.
Conclusion: Potential Opportunities for New Businesses
The recent announcement by Morgan Stanley, highlighting buy-rated global stocks expected to outperform, presents potential opportunities for new businesses in various sectors. Particularly, the focus on pharmaceutical stocks indicates the ongoing growth and demand in the healthcare industry. As Morgan Stanley singles out companies like Novo Nordisk, Grifols, and Indivior, it suggests that innovative pharmaceutical products, such as weight-loss drugs, could provide a fertile ground for new businesses to enter and thrive.
Furthermore, the inclusion of Deutsche Telekom on the buy list highlights the positive outlook for telecommunications companies. With improved trends in both the US and Germany, new businesses within the telecommunications sector could benefit from this upward momentum. Similarly, Scout24's steady subscription revenues indicate the potential for success in the entertainment industry, encouraging new ventures in this space.
Additionally, the selection of French materials manufacturer Saint-Gobain signifies an optimistic view on the industrial sector. As the company's management expresses confidence in their margins, new businesses focusing on materials manufacturing could find opportunities for growth and profitability.
Lastly, RWE's overweight rating in the energy sector suggests potential advancements and earnings-per-share upgrades. This presents an avenue for emerging businesses working on renewable energy technologies and solutions to make a notable impact.
Overall, the identification of these buy-rated stocks not only provides investors with opportunities for market outperformance but also hints at potential areas of growth for new businesses in sectors such as healthcare, telecommunications, entertainment, industrial manufacturing, and renewable energy. Entrepreneurs and investors should carefully consider these hot stocks to capitalize on the emerging trends and opportunities in the market.
Article First Published at: https://www.cnbc.com/2023/07/21/morgan-stanley-particularly-high-conviction-stocks-to-beat-the-market.html