* Reintroducing the Fresh Money Buy List.
We are reintroducing the Fresh Money Buy List, a product originally created by former Morgan Stanley US Equity
Strategist Byron Wien. We focus on 10 of the firm’s best stock recommendations. Selection criteria is simple - stocks that we expect to outperform the market in the next 3-6 months based on specific catalysts such as a change in industry
fundamentals, a positive EPS surprise, or new product introduction.
* Strategy + Bottom Up Insight.
The list will be maintained by the US Equity Strategy team but relies on input from our bottom up equity research analysts. The list is not a portfolio, but rather, a compilation of some of our best near term risk-reward stock ideas that stand on their own merit. As such, we will not force names onto the list to fit our sector views or other macro constraints and it may not behave like a diversified portfolio. Given the ideas are meant to work over 3-6 months, the list will exhibit relatively high turnover of 50-100% per year.
* The Fresh Money Buy List
- CLR - We see a path to multiple expansion as CLR is higher quality than market perceives; best way to play capital discipline among E&Ps.
- CSCO - Best positioned to provide software/security defined networking (SDN ) solutions to reduce cost of 2 security breaches.
- DIS - Potential winner in shift to OTT video consumption with further growth from affiliate revs, parks, & film, at a discount to the market.
- ETFC - Earnings upside via improving fundamentals and rising NIM with possibility for strategic optionality.
- IQV - Data, therapeutics expertise, and scale position IQV to service pharma manufacturers as drug development becomes increasingly digitalized.
- KNX - Well positioned to benefit from electronic logging device led pricing, volume, & utilization gains, with the largest one-way truckload exposure.
- LYB - MSe 18+ EPS $2/$3 > market as market is too bearish 18/1H19 supply cycle & overlooking 2H19+ upcycle. Under-levered B/S offers optionality.
- MSFT - Accelerating rev. growth, improving margins, and capital return drives a high-teens total return profile for MSFT over the next three years.
- NEE - Best-in-class utility with premier renewable business offering 6 - 8% EPS & 12 - 14% div. growth through 2020 with capital deployment oppty.
- TMUS - Market share gains and operating leverage combine for significant excess FCF and capital return to shareholders.