Morgan Stanley Unveils 2027 Stock Picks Following Strong Portfolio Returns
Morgan Stanley unveils its 2027 stock pick club, featuring 15 equities selected through an anti-momentum strategy focusing on distinct growth drivers rather than recent market hype.
Morgan Stanley has refreshed its preferred stock picks for the next 12 months, following an exceptionally successful year for its previous selection portfolio. The bank's "Vintage Values 2026" portfolio generated a return of 32.12% between September 9, 2025, and September 11, 2026, compared to 18.96% for the S&P 500 index over the same period. Now, the bank is introducing the 2027 club—featuring 15 stocks, of which only three appeared on the previous list.
The new list is spread across a long line of sectors, avoiding a sole focus on technology giants. Among the choices are Alphabet, Amazon, and Apple; Eli Lilly and McKesson from the healthcare sector; Visa, LPL Financial Holdings, and TransUnion from financial services and payments; Equinix for data infrastructure; and Williams Companies for natural gas infrastructure. Alongside these, the bank also selected Coca-Cola, Dynatrace in software, Honeywell Aerospace in aviation, Keysight Technologies in test and measurement equipment, and even Liberty Formula 1, the commercial rights holder for Formula 1 racing. Only three stocks—Amazon, McKesson, and Visa—remained on the list from the previous year.
The Anti-Momentum Strategy
However, Morgan Stanley emphasizes that this is not simply a list of the "stocks that rose the most." In fact, this year's strategy is defined by the bank as Anti-Momentum. According to the bank, the stocks were chosen due to specific corporate growth drivers rather than merely their recent stock performance.
Over 50 stocks were recommended by Morgan Stanley's North American analysts as the ones they believe are best to hold for a year. The list was then narrowed down to 15 stocks through a combination of quantitative analysis, evaluation of company performance, macroeconomic risks, sectoral positioning, valuation, and risk-reward ratios.
Premium Valuation and Quality Bias
One of the most prominent features of the new list is a bias toward large, high-quality, and growing companies. About 60% of the stocks on the list are in Morgan Stanley's top two quality tiers, compared to just 56% in the S&P 500. However, this comes at a price: the new list trades at a premium relative to the market across most valuation metrics.
In other words, precisely when the US stock market is at record highs, Morgan Stanley is not trying to find the next "hot stock," but rather companies with business engines capable of continuing to perform even if market momentum weakens.
Alongside tech giants Alphabet, Apple, and Amazon, the list includes companies from entirely different fields—ranging from pharma and data infrastructure to aviation, credit, Formula 1 racing, and soft drinks.
