Alphabet (GOOGL), Amazon.com (AMZN), Adobe (ADBE) and Netflix (NFLX) count among the best growth stocks in Morgan Stanley's annual update of its "Secular Growth Stocks" list. The investment firm also looked further afield from top technology stocks for "names we expect to grow strongly well into the future," from travel to pharmaceuticals to retail.
Google parent Alphabet stock, Amazon stock and Netflix stock are three of the FANG components. Alphabet rose 0.3% on Thursday, Netflix climbed 2.2% while Amazon dipped 0.25%. All three enjoyed big gains Wednesday.
Eight of the 25 best growth stocks on Morgan Stanley's list also make the IBD 50 list: Adobe stock, Altassian (TEAM), ServiceNow (NOW), Veeva Systems (VEEV), Illumina (ILMN), Mastercard (MA), Visa (V) and Ulta Beauty (ULTA).
Morgan Stanley's equity strategists foresee a major leadership change from growth stocks to value stocks.
They wrote in a pair of reports Thursday: "Our U.S. Economics team's base case is slowing growth in 2019, accompanied by higher inflation, followed by growth reaccelerating and inflation rising again in 2020."
25 Secular Growth Stocks
Here's the full list of 25 best growth stocks that Morgan Stanley believes can grow strongly notwithstanding global economic conditions.
They're companies characterized by sustainable competitive advantages, market share gains or pricing power.
- Adobe
- Netflix
- Alphabet
- Palo Alto Networks (PANW)
- Amazon.com
- Pluralsight (PS)
- Assurant (AIZ)
- Regeneron (REGN)
- Atlassian
- Salesforce.com (CRM)
- BioMarin Pharma (BMRN)
- ServiceNow
- Booking Holdings (BKNG)
- Ulta Beauty
- Expedia (EXPE)
- Veeva Systems
- Illumina
- Vertex Pharma (VRTX)
- Intuitive Surgical (ISRG)
- Visa
- IQVIA (IQV)
- Workday (WDAY)
- MasterCard
- Zoetis (ZTS)
- National Vision Holdings (EYE)
25 Secularly Challenged Stocks
These companies face "exposure to longer-term secular challenges" and their risk/reward profile looks unfavorable on a 12-18 month horizon, Morgan Stanley said. The list includes several retailers such as Macy's (M).
- Abercrombie & Fitch (ANF)
- Kohl's (KSS)
- Allscripts (MDRX)
- Kraft Heinz (KHC)
- Avis Budget (CAR)
- Macy's
- Bed Bath & Beyond (BBBY)
- MSG Networks (MSGN)
- C.H. Robinson (CHRW)
- Patterson Companies (PDCO)
- Citrix Systems (CTXS)
- Seaspan (SSW)
- EQT Corp. (EQT)
- Southern Co. (SO)
- Fitbit (FIT)
- Tenneco (TEN)
- Franklin Resources (BEN)
- United Natural Foods (UNFI)
- Henry Schein (HSIC)
- United Parcel Service (UPS)
- Hertz Global Holdings (HRI)
- Waddell & Reed Financial (WDR)
- J.M. Smucker (SJM)
- Western Union (WU)
- Juniper Networks (JNPR)
