Morgan Stanley is Recommending These 13 Stocks for 2024

Published on January 25, 2024 at 6:07 am by Fahad Saleem in Hedge Funds, News

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.”

Photo by Mohamed Hadji on Unsplash

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.

NYSE:NU NYSE:LHX NYSE:LAZ NYSE:DVN Headline Show more...

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Published on May 1, 2024 at by Inan Dogan, PhD

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!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

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 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

But with so many choices, how do you find the hidden gem – the company poised for explosive growth?

That’s where our expertise comes in.

We’ve got the answer, but there’s a twist…

Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.

That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!

Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

It’s like having a race car on a go-kart track.

They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 75%.

For a ridiculously low price of just $24, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

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

The Name of the Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.
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.
Lifetime Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund ANYTIME, no questions asked.

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:

Head over to our website and subscribe to our Premium Readership Newsletter for just $24.
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.
Sit back, relax, and know that you’re backed by our ironclad lifetime money-back guarantee.

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

Subscribe Now!

A New Dawn is Coming to U.S. Stocks

Published on May 2, 2024 at by Insider Monkey Staff

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…

Insider Monkey Ads

Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Log In

Sign Up