Morgan Stanley Sees Value in Defensive Growth Stocks Despite Economic Uncertainty
In a recent note to clients, Morgan Stanley chief U.S. equity strategist Mike Wilson said that the market is likely to trade in a “late cycle” manner, given the uncertainty about what’s coming next. He recommended a barbell portfolio of defensive growth stocks and late-cycle cyclicals.
Defensive growth stocks are a type of stock that combines the defensive characteristics of traditional defensive sectors, such as healthcare and consumer staples, with the growth potential of high-growth sectors, such as technology and industrials. These stocks are often well-positioned to weather economic downturns and deliver consistent growth over the long term.
Three Defensive Growth Stocks Morgan Stanley Buy Ratings
Howmet Aerospace (HWM): Howmet Aerospace is a global leader in advanced engineered solutions for the aerospace and defense industries. The company is well-positioned to benefit from the long-term growth of the aerospace industry, which is driven by factors such as rising air travel demand and increasing defense spending.
Thermo Fisher (TMO): Thermo Fisher is a global leader in scientific research and laboratory equipment. The company serves a wide range of industries and sectors, and its products are essential for research, diagnostics, and manufacturing processes. Thermo Fisher is well-positioned to benefit from the long-term growth of the life sciences industry, which is driven by factors such as aging populations and increasing investment in drug discovery.
Zoetis Inc. (ZTS): Zoetis is a leading global animal health firm. The company provides a wide range of veterinary medicines, vaccines, diagnostics, and other products for the care and welfare of animals. Zoetis is well-positioned to benefit from the long-term growth of the pet care industry, which is driven by factors such as rising pet ownership rates and increasing disposable incomes.
Analysts Are Bullish on All Three Stocks
All three of the Morgan Stanley picks have Strong Buy Ratings consensus ratings from analysts. Analysts believe that these stocks are well-positioned to deliver above-market growth in the years to come.