Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Morgan Stanley is Recommending These 13 Stocks for 2024

In this article, we will take a detailed look at Morgan Stanley is Recommending These 13 Stocks for 2024. For a quick overview of such stocks, read our article Morgan Stanley is Recommending These 5 Stocks for 2024.

Investors are slowly but surely coming to terms with the reality that the Fed will not be as quick to announce a victory in its battle against inflation as they’d expected in the last few weeks of 2023. Economic growth is also expected to remain muted this year. Argus Research in its 2024 market outlook report said that the US economy saw peak growth in the third quarter of 2023 and it is “unlikely that GDP growth will be even half of that rate in the first six months of 2024.” The main reason behind this expectation, according to Argus, is the decline in US household savings accumulated during the pandemic days that kept things afloat in 2023 despite tough economic conditions. Despite this, Argus expects the stock market to grow in 2024 and earnings to expand.

“Meantime, stock valuations have improved during 2023 despite the start of a new bull market. At times last year, our Stock/Bond Barometer was signaling that stock prices were more than one standard deviation above normal, due to slowing earnings growth, and high inflation and interest rates. Currently, however, the Barometer is indicating that stocks are as close to fair value as they have been since 1Q22. On more traditional valuation measures, the current forward P/E ratio on the S&P 500 of 16.7x is below the recent peak of 22x; the current price/sales ratio of 2.3x is below the 1Q22 ratio of 3.0x; and the cur rent dividend yield of 1.6% is higher than the 1Q23 yield of 1.3%. We look for stock valuation multiples to widen modestly in 2024, aiding equity market returns.”

Methodology

In December, Morgan Stanley published its Equity Sales Global Thoughts, Themes and Ideas report in which it mentioned a list of stocks it labeled “global single name stocks longs” for 2024. From this list of stocks we picked 13 stocks with the highest number of hedge fund investors. Why hedge funds? Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator. Some top names in the list include Walt Disney Co (NYSE:DIS), Intel Corp. (NASDAQ:INTC) and NextEra Energy Inc. (NYSE:NEE).

13. Lazard Inc (NYSE:LAZ)

Number of Hedge Fund Investors: 13

Financial advisory and asset management company Lazard Inc (NYSE:LAZ) ranks 13th in our list of the best stocks to buy in 2024 according to Morgan Stanley.

Wolfe Research analyst Steven Chubak earlier this month upgraded Lazard Inc (NYSE:LAZ) to Outperform from Peer Perform.

As of the end of the third quarter of 2023, 11 hedge funds tracked by Insider Monkey had stakes in Lazard Inc (NYSE:LAZ).

12. Varonis Systems Inc (NASDAQ:VRNS)

Number of Hedge Fund Investors: 26

Security software company Varonis Systems Inc (NASDAQ:VRNS) ranks 12th in our list of the best stocks to buy for 2024 according to Morgan Stanley. The investment firm said in its December 2023 report that Varonis Systems Inc (NASDAQ:VRNS) stock has a 49% upside to bull case. Susquehanna in December also gave a bullish rating to the stock along with several other cybersec names as the firm believes spending in the sector will continue to rise amid online threats.

Out of the 910 funds tracked by Insider Monkey, 26 hedge funds reported having stakes in Varonis Systems Inc (NASDAQ:VRNS).

11. Seagate Technology Holdings PLC (NASDAQ:STX)

Number of Hedge Fund Investors: 31

Seagate Technology Holdings PLC (NASDAQ:STX) ranks 11th in our list of the best stocks to buy for 2024 according to Morgan Stanley.

BMO Capital also recently published a list of tech stocks at the bottom 90% market cap with the highest growth at a reasonable price. Seagate Technology Holdings PLC (NASDAQ:STX) made it to the list. Here is what BMO said about these stocks:

“When putting technology performance trends into a broader two-year time frame, the trends are certainly not stretched by any means and are about average when compared with the post-tech bubble period. Our analysis suggests that the sector outperforms about 80% of the time in the year following similar two-year performance levels.”

10. L3Harris Technologies Inc (NYSE:LHX)

Number of Hedge Fund Investors: 44

Aerospace and defense company L3Harris Technologies Inc (NYSE:LHX) is one of best stocks to buy for 2024 according to Morgan Stanley. The investment firm said in its Equity Sales Global Thoughts, Themes and Ideas report published in December 2023 that there’s a 34% upside to base case for L3Harris Technologies Inc (NYSE:LHX) in 2024.

As of the end of the third quarter of 2023, 44 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in L3Harris Technologies Inc (NYSE:LHX), up from 33 hedge funds in the previous quarter. This shows a remarkable jump in hedge fund sentiment for the stock.

Like LHX, hedge funds are also bullish on Walt Disney Co (NYSE:DIS), Intel Corp. (NASDAQ:INTC) and NextEra Energy Inc. (NYSE:NEE).

Diamond Hill Mid Cap Strategy made the following comment about L3Harris Technologies, Inc. (NYSE:LHX) in its Q3 2023 investor letter:

“L3Harris Technologies, Inc. (NYSE:LHX) is a defense contractor focused primarily on communications, surveillance and electronic warfare. We anticipate the US’s defense budget will be better than expected over the next few years as the Defense Department focuses on preparing for peer-level threats — an area in which LHX’s capabilities fit nicely. We believe there is room for improvement in recent execution — particularly at recently acquired Aerojet Rocketdyne — and we think LHX’s new management team is well-qualified to improve results. We accordingly capitalized on a recent share-price decline to initiate a position at what we consider a compelling valuation.”

9. Discover Financial Services (NYSE:DFS)

Number of Hedge Fund Investors: 46

Morgan Stanley in December 2023 recommended investors to buy financial services company Discover Financial Services (NYSE:DFS) for 2024. The investment firm said the stock has a 36% upside to bull case. Over the past one year the stock has lost about 9% in value. Discover Financial Services (NYSE:DFS) has a dividend yield of about 2.5%.

During the fourth quarter Discover Financial Services (NYSE:DFS) posted GAAP EPS of $1.54, missing estimates by $0.93. Revenue in the quarter jumped 12.9% year over year to $4.2 billion, beating estimates by $90 million.

8. NU Holdings Ltd (NYSE:NU)

Number of Hedge Fund Investors: 50

Digital banking company NU Holdings Ltd (NYSE:NU) is one of the best stocks to buy for 2024 according to Morgan Stanley.

White Falcon Capital Management stated the following regarding Nu Holdings Ltd. (NYSE:NU) in its fourth quarter 2023 investor letter:

“The top 5 positions in the portfolio were: Precious Metals royalty basket, Nu Holdings Ltd. (NYSE:NU), AMD Amazon.com and Converge Technology Services. We often talk about our investment in Nu Holdings but have not presented you with a detailed research report. Our cost base on Nu is about $4 per share while the stock is currently trading for $9 per share. We continue to hold this position and, in the appendix to this letter, we are attaching our thesis on Nu Holdings. We are of the opinion that Nu is a rare company with the powerful combination of substantial market opportunity, an excellent business model, and an outstanding management team.

Nu Holdings is a $40 bn market capitalization company listed on the NYSE that provides digital banking platforms and digital financial services in Brazil, Mexico, Colombia. It offers Nu credit and debit cards; savings solutions, such as Nu Personal Accounts, and a digital account solution that supports all personal finance activities…” (Click here to read the full text)

7. Devon Energy Corp (NYSE:DVN)

Number of Hedge Fund Investors: 52

Devon Energy Corp (NYSE:DVN) is one of the top stocks recommended by Morgan Stanley for 2024. The firm said in December the stock has a 57% upside to bull case.

BMO Capital earlier this month published a list of January 2024 laggards it believes will outperform for the rest of the year. Devon Energy Corp (NYSE:DVN) made it to the list. Here is what BMO said about these stocks:

“January underperformers go on to produce relatively high January 31 through December 31 returns, on average, handily exceeding the overall index returns. Therefore, we believe it makes a lot of sense for investors to explore opportunities within these stocks, particularly at this point of the year.”

A total of 52 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Devon Energy Corp (NYSE:DVN). The biggest stakeholder of Devon Energy Corp (NYSE:DVN) during this period was Donald Yacktman’s Yacktman Asset Management which owns a $145 million stake in Devon Energy Corp (NYSE:DVN).

6. Biogen Inc (NASDAQ:BIIB)

Number of Hedge Fund Investors: 57

Biotech company Biogen Inc (NASDAQ:BIIB) ranks sixth in our list of the best stocks for 2024 recommended by Morgan Stanley. Morgan Stanley said in its December report that the stock has a 41% upside to base case.

Earlier this month, Baird gave a bullish outlook on the biotechnology sector as it believes rate cuts in 2024 would bode well for the broader biotech industry. Baird also believes biotech stocks could continue the momentum of the last quarter of 2023. Biogen Inc (NASDAQ:BIIB) is amongst its top favorite biotech stocks for 2024. In addition to Walt Disney Co (NYSE:DIS), Intel Corp. (NASDAQ:INTC) and NextEra Energy Inc. (NYSE:NEE), Biogen is a top stock recommendation from Morgan Stanley.

Click to continue reading and see Morgan Stanley is Recommending These 5 Stocks for 2024.

Suggested Articles:

Disclosure. None. Morgan Stanley is Recommending These 13 Stocks for 2024 was initially published on Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

The best part? You can discover everything about this company and its groundbreaking technology right now.

I’ve compiled everything you need to know about this groundbreaking company in a detailed, members-only report.

Trust me — you’ll want to read this report before putting another dollar into any tech stock.

For a ridiculously low price of just $9.99 a month, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Here’s why this is a deal you can’t afford to pass up:

• Access to our Detailed Report on this Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.

• 11 New Issues of Our Premium Readership Newsletter: You will also receive 11 new issues and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.

• One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149

• Bonus Reports: Premium access to members-only fund manager video interviews

• Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.

• 30-Day Money-Back Guarantee:  If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.

If you’re thinking about getting in, don’t wait – because once Wall Street catches wind of this story, the easy money will be gone.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99 a month.

2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 100+% Return within 12 to 24 months.

We’re now offering month-to-month subscriptions with no commitments.

For a ridiculously low price of just $9.99 per month, you can unlock our in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!


No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!