MORGAN STANLEY: These 16 stocks are set for huge growth no matter what – Business Insider


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  • Many investors are worried that the time has come for an economic downturn. 
  • Morgan Stanley has compiled a list of stocks its analyst think are primed for growth regardless of macroeconomic conditions. 


Morgan Stanley has released its list of stocks that could outperform markets, regards of what might happen to upset economic conditions. 

These “secular growth stocks,” as the bank calls its 8th annual report out Wednesday, are companies in which its analyst are bullish and see an upside beyond the usual business cycle. 

“While our US Equity Strategy team has remained positive on an equity market they believe is “Classic Late Cycle,” for some long-term investors, it may make sense to focus not on the cycle, but through the cycle,” the bank said. “Indeed, Morgan Stanley Research has long focused on identifying multi-year secular trends — powerful long-term drivers that can reshape or disrupt economies, sectors, and business models.” 

To compile the list, Morgan Stanley screened the thousands of stocks generated revenue growth for the last three years. It then focused on those rated “overweight” or “equal weight”  by its analysts to find which had a three-year compound annual growth rate (CAGR) forecast of at least 15% for earnings per share and 10% for revenue. 

Here are the 16 stocks that could see revenue with a CAGR of more than 20% through 2019:


16. CyrusOne

Ticker: CONE

Sector: Telecom Services

Market cap: $5.65 billion

Revenue CAGR (2016-2019e): 20%

EPS CAGR (2016-2019e): 20%

Year-to-date stock performance: +27.5%

Source: Morgan Stanley

Get real-time CONE charts here>>

 

15. Nvidia

Ticker: NVDA

Sector: Technology

Market cap: $118.14 billion

Revenue CAGR (2016-2019e): 20%

EPS CAGR (2016-2019e): 23%

Year-to-date stock performance: +91.73%

Source: Morgan Stanley

Get real-time NVDA charts here>>

 

14. Veeva Systems

Ticker: VEEV

Sector: Technology

Market cap: $8.58 billion

Revenue CAGR (2016-2019e): 20%

EPS CAGR (2016-2019e): 18%

Year-to-date stock performance: +44.14%

Source: Morgan Stanley

Get real-time VEEV charts here>>

 

13. Salesforce

Ticker: CRM

Sector: Technology

Market cap: $71.08 billion

Revenue CAGR (2016-2019e): 21%

EPS CAGR (2016-2019e): 24%

Year-to-date stock performance: +41.72%

Source: Morgan Stanley

Get real-time CRM charts here>>

 

12. Align Technologies

Ticker: ALGN

Sector: Healthcare

Market cap: $16.10 billion

Revenue CAGR (2016-2019e): 24%

EPS CAGR (2016-2019e): 35%

Year-to-date stock performance: +122.83%

Source: Morgan Stanley

Get real-time ALGN charts here>>

 

11. Vertex Pharmaceuticals

 

Ticker: VRTX

Sector: Healthcare

Market cap: $16.10 billion

Revenue CAGR (2016-2019e): 24%

EPS CAGR (2016-2019e): 35%

Year-to-date stock performance: +122.83%

Source: Morgan Stanley

Get real-time VRTX charts here>>

 

10. Palo Alto Networks

Ticker: PANW

Sector: Technology

Market cap: $13.74 billion

Revenue CAGR (2016-2019e): 25%

EPS CAGR (2016-2019e): 33%

Year-to-date stock performance: +17.23%

Source: Morgan Stanley

Get real-time PANW charts here>>

 

9. Amazon

Ticker: AMZN

Sector: Technology

Market cap: $472.17 billion

Revenue CAGR (2016-2019e): 26%

EPS CAGR (2016-2019e): 31%

Year-to-date stock performance: +38.21%

Source: Morgan Stanley

Get real-time AMZN charts here>>

 

8. Netflix

Ticker: NFLX

Sector: Technology

Market cap: $84.02 billion

Revenue CAGR (2016-2019e): 26%

EPS CAGR (2016-2019e): 117%

Year-to-date stock performance: 50.53%

Source: Morgan Stanley

Get real-time NFLX charts here>>

 

7. Workday

Ticker: WDAY

Sector: Technology

Market cap: $22.58 billion

Revenue CAGR (2016-2019e): 27%

EPS CAGR (2016-2019e): 108%

Year-to-date stock performance: +56.43%

Source: Morgan Stanley

Get real-time WDAY charts here>>

 

6. TPI Composites

Ticker: TPIC

Sector: Consumer Discretionary/Industrials

Market cap: $794 million

Revenue CAGR (2016-2019e): 29%

EPS CAGR (2016-2019e): 46%

Year-to-date stock performance: +48.54%

Source: Morgan Stanley

Get real-time TPIC charts here>>

 

5. Proofpoint

Ticker: PFPT

Sector: Technology

Market cap: $4.27 million

Revenue CAGR (2016-2019e): 30%

EPS CAGR (2016-2019e): 70%

Year-to-date stock performance: +23.73%

Source: Morgan Stanley

Get real-time PFPT charts here>>

 

4. ServiceNow

Ticker: NOW

Sector: Technology

Market cap: $21.31 billion

Revenue CAGR (2016-2019e): 30%

EPS CAGR (2016-2019e): 50%

Year-to-date stock performance: +66.72%

Source: Morgan Stanley

Get real-time NOW charts here>>

 

3. Atlassian

Ticker: TEAM

Sector: Technology

Market cap: $11.53 billion

Revenue CAGR (2016-2019e): 33%

EPS CAGR (2016-2019e): 20%

Year-to-date stock performance: +94.96%

Source: Morgan Stanley

Get real-time TEAM charts here>>

 

2. Facebook

Ticker: FB

Sector: Technology

Market cap: $507.85 billion

Revenue CAGR (2016-2019e): 33%

EPS CAGR (2016-2019e): 35%

Year-to-date stock performance: +44.62%

Source: Morgan Stanley

Get real-time FB charts here>>

 

1. Tesla

Ticker: TSLA

Sector: Consumer Discretionary/Industrials

Market cap: $57.593 billion

Revenue CAGR (2016-2019e): 48%

EPS CAGR (2016-2019e): Not applicable

Year-to-date stock performance: +51.9%

Source: Morgan Stanley

Get real-time TSLA charts here>>

 

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