In this piece, we will take a look at Morgan Stanley’s top 15 stock picks for 2023. For more Morgan Stanley stocks, head on over to Morgan Stanley’s Top 5 Stock Picks For 2023.
If there’s one thing that can be said for sure about 2022, it’s that the year turned out to be a lot different than many investors, executives, or even members of the general public were expecting. The coronavirus outbreak of 2019 lasted for two years, and with it came the constant hide and seek of lockdowns. This ended up paralyzing economic activity, and the stock market was kept afloat only through stimulus measures after an initial wipeout at the start of 2020 that saw major indexes bleed as much as 30% of their values within days.
However, with 2022 starting, the virus had started to slow down and vaccinations were in full flow, giving all sectors some hope of a return to normalcy. However, generous spending by governments during the pandemic was waiting to strike back in the form of painful inflation, even as several industry leaders such as Bill Ackman warned that the Federal Reserve would have to raise interest rates. Just as this debate was going on, Russia’s brutal invasion of Ukraine started in full flow, and the rest is history. The combined effect of a global energy supply chain rebalancing and a determined Fed sapped investor confidence once again, and major stock market indexes once again bled their value.
Now, as 2023 starts, investors are cautiously optimistic. Indexes such as the NASDAQ Composite, S&P 500, and the NYSE Composite are up by 14.73%, 7.5%, and 4.74%, respectively, hinting that the market as a whole believes that inflation might come down soon. This cautious aura of positivity is also present in the mind of the legendary Ken Fisher of Fisher Investments, who, in a recent video, shared a rather interesting take on why 2023 just might be the year everyone is happy:
One of the points that I have made often. I have used this for decades. It’s worked regularly. And I believe it will work now in particular, is that third years of U.S. Presidents’ terms – which is what 2023 is – tend to be overwhelmingly positive. We haven’t had a negative third year of a U.S. President’s term in the United States of America since 1939 which was only down nine-tenths of one percent. In the accurate measured history of the stock market, only down twice. The fact is 1939 as you recall, we were going into World War 2 – a pretty bad negative thing. As I have said in prior videos, talking about what I call the midterm miracle, which is the nine months that begin October 1st of the midterm election year 2022, which has worked perfectly in the fourth quarter of 2022.
Those nine months, collectively, are the most consistently profitable nine months span in U.S. stock market history – positive 92% of history, with an overall 20% positivity. But that is because of the gridlock, or the relative gridlock, created in the midterms which rolls right on over into those first two quarters – calendar quarters – of the next year, the third year of the President’s term. And traditionally, although not always, it is the first half of that year tied to that realization that the government isn’t going to change a lot of taxes, isn’t going to change a lot of property rights, isn’t going to be able to create a whole lot of new regulation, when people have been all through the first and second years of the President’s term fighting over all of that stuff, which was abundantly clear in 2021 and 2022. That relative calm ushers in peace, longer term investing horizon for businesses and capital expenditure, and people in their investment activities, and it buoys stocks up. It’s a form of surprise that no one expects, but it always works.
With these details in mind, we thought to take a look at what the investment professionals at Morgan Stanley (NYSE:MS) are saying and how well their stock picks are performing in 2023. Some high performers are Simon Property Group, Inc. (NYSE:SPG), Monster Beverage Corporation (NASDAQ:MNST), and Amazon.com, Inc. (NASDAQ:AMZN)
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Our Methodology
In order to sift out Morgan Stanley’s top stock picks, we used a compilation of its top share price targets. The potential upside for these was calculated and they were ranked accordingly. For more stocks, you can also check out Jim Cramer’s Favorite Energy and Bank Stock Picks.
Morgan Stanley’s Top 15 Stock Picks For 2023
15. Cboe Global Markets, Inc. (BATS:CBOE)
Share Price Upside: 2%
Number of Hedge Fund Holders In Q4 2022: 39
Cboe Global Markets, Inc. (BATS:CBOE) is a stock exchange operator. The firm operates numerous options, futures, and stock exchanges.
Cboe Global Markets, Inc. (BATS:CBOE) announced in February 2023 that it is planning to launch a single data feed for its four different options exchanges. Insider Monkey’s fourth quarter of 2022 survey covering 943 hedge funds revealed that 39 had bought the firm’s shares.
Cboe Global Markets, Inc. (BATS:CBOE)’s largest investor is Jim Simons’ Renaissance Technologies which owns 2 million shares that are worth $254 million.
Along with Monster Beverage Corporation (NASDAQ:MNST), Simon Property Group, Inc. (NYSE:SPG), and Amazon.com, Inc. (NASDAQ:AMZN), Cboe Global Markets, Inc. (BATS:CBOE) is one of Morgan Stanley’s best performing stocks for 2023.
14. Eli Lilly and Company (NYSE:LLY)
Share Price Upside: 5%
Number of Hedge Fund Holders In Q4 2022: 76
Eli Lilly and Company (NYSE:LLY) is an American pharmaceutical giant. The firm primarily makes and sells treatments for mental health disorders and it has operations in more than a dozen countries.
Eli Lilly and Company (NYSE:LLY) took another step towards diversity in February 2023 when it announced that it will also include black patients in a clinical trial. Insider Monkey scoured through 943 hedge fund portfolios for last year’s fourth quarter and discovered that 76 had held a stake in the firm.
Eli Lilly and Company (NYSE:LLY)’s largest investor is Ken Fisher’s Fisher Asset Management which owns 3.9 million shares that are worth $1.4 billion.
13. Ferrari N.V. (NYSE:RACE)
Share Price Upside: 6%
Number of Hedge Fund Holders In Q4 2022: 32
Ferrari N.V. (NYSE:RACE) is a sports car company that is headquartered in Maranello, Italy. The firm operates through merchants, franchised stores, and its own retail outlets.
Taking advantage of the valentines day hype, Ferrari N.V. (NYSE:RACE) announced its new Formula 1 car called SF-24 in February 2023, calling it its own ‘valentine’. By the end of 2022’s December quarter, 32 of the 943 hedge funds polled by Insider Monkey had bought Toast, Inc. (NYSE:TOST)’s shares.
Nicolai Tangen’s Ako Capital is Ferrari N.V. (NYSE:RACE))’s largest investor with a $203 million stake that comes courtesy of 952,031 shares.
12. Equity Residential (NYSE:EQR)
Share Price Upside: 10%
Number of Hedge Fund Holders In Q4 2022: 30
Equity Residential (NYSE:EQR) is a real estate investment trust that invests primarily in apartment buildings and has hundreds of properties all over America.
Equity Residential (NYSE:EQR) is currently involved in a discussion with activists for building an apartment building on a church campus, with activists wanting to declare the area a landmark first. Insider Monkey’s 943 hedge fund survey for 2022’s December quarter revealed that 30 had bought the firm’s shares.
Equity Residential (NYSE:EQR)’s largest hedge fund investor is Jean-Marie Eveillard’s First Eagle Investment Management which owns 7.5 million shares that are worth $446 million.
11. Thermo Fisher Scientific Inc. (NYSE:TMO)
Share Price Upside: 14%
Number of Hedge Fund Holders In Q4 2022: 92
Thermo Fisher Scientific Inc. (NYSE:TMO) is a Fortune 500 company that provides medical instruments and other products. The firm is based in Waltham, Massachusetts.
Thermo Fisher Scientific Inc. (NYSE:TMO) expanded its portfolio in February 2023 as it announced a partnership with a startup to procure testing kits for serious diseases such as hepatitis and tuberculosis. As part of their December quarter of 2022 investments, 92 of the 943 hedge funds polled by Insider Monkey had bought its shares.
Ken Fisher’s Fisher Asset Management is Thermo Fisher Scientific Inc. (NYSE:TMO)’s largest investor as it owns 2.3 million shares that are worth $1.2 billion.
10. Exxon Mobil Corporation (NYSE:XOM)
Share Price Upside: 15%
Number of Hedge Fund Holders In Q4 2022: 79
Exxon Mobil Corporation (NYSE:XOM) is an American oil and gas giant. It is a direct descendant of the Standard Oil Company, which had made John D. Rockefeller the richest man in the world during the late 1800s and the early 1900s.
Exxon Mobil Corporation (NYSE:XOM) is rapidly increasing its natural gas procurement and reached a deal with a Mexican company to buy two million tons of LNG per year annually in February 2023. 75 of the 942 hedge funds polled by Insider Monkey had invested in the firm in Q3 2022.
Exxon Mobil Corporation (NYSE:XOM)’s largest investor is Rajiv Jain’s GQG Partners which owns 33 million shares that are worth $3.6 billion.
9. Lockheed Martin Corporation (NYSE:LMT)
Share Price Upside: 18%
Number of Hedge Fund Holders In Q4 2022: 53
Lockheed Martin Corporation (NYSE:LMT) is one of the world’s largest and most advanced defense and astronautics companies. The firm makes and sells satellites, fighter aircraft, and spaceships.
Lockheed Martin Corporation (NYSE:LMT)’s F-22 Raptor was in the news recently when it was used to bring down a Chinese spy balloon flying over the United States. As part of their Q4 2022 investments, 53 of the 943 hedge funds profiled by Insider Monkey had bought the firm’s shares.
Lockheed Martin Corporation (NYSE:LMT)’s largest investor in our database is Rajiv Jain’s GQG Partners which owns 1.1 million shares that are worth $559 million.
8. CDW Corporation (NASDAQ:CDW)
Share Price Upside: 23%
Number of Hedge Fund Holders In Q4 2022: 36
CDW Corporation (NASDAQ:CDW) is an information technology products and services company. The firm is based in Lincolnshire, Illinois.
CDW Corporation (NASDAQ:CDW)’s fourth quarter of 2022 earnings revealed in February 2023 outlined that the firm beat analyst estimates for EPS of $2.49 by posting $2.50 in the segment. Additionally, as of Q4 2022, 36 of the 943 hedge funds polled by Insider Monkey had held a stake in the computing firm.
CDW Corporation (NASDAQ:CDW)’s largest investor is Robert Joseph Caruso’s Select Equity Group which owns 6.7 million shares worth $1.2 billion.
7. State Street Corporation (NYSE:STT)
Share Price Upside: 24%
Number of Hedge Fund Holders In Q4 2022: 40
State Street Corporation (NYSE:STT) is a financial services firm that is one of the oldest of its kind since it was set up in 1792. The firm is based in Boston, Massachusetts.
State Street Corporation (NYSE:STT)’s managing director weighed in on the current chatbot craze in February 2023, as he shared that while AI can serve as a useful chat tool, its knowledge of the stock market is around 80%. By the end of last year’s September quarter, 40 of the 943 hedge funds polled by Insider Monkey had invested in the firm.
State Street Corporation (NYSE:STT)’s largest investor is Natixis Global Asset Management’s Harris Associates which owns 5.6 million shares that are worth $436 million.
6. Visa Inc. (NYSE:V)
Share Price Upside: 28%
Number of Hedge Fund Holders In Q4 2022: 177
Visa Inc. (NYSE:V) Visa Inc. (NYSE:V) is a payments platform company that provides banks with debit and credit cards and merchants the ability to digitally conduct transactions.
Visa Inc. (NYSE:V) is making moves in the financial technology platform through which it has partnered with another company to provide small business loans. 177 of the 943 hedge funds polled by Insider Monkey during Q4 2022 had invested in the firm.
Visa Inc. (NYSE:V)’s largest investor is Chris Hohn’s TCI Fund Management which owns 19 million shares that are worth $4 billion.
Simon Property Group, Inc. (NYSE:SPG), Visa Inc. (NYSE:V), Monster Beverage Corporation (NASDAQ:MNST), and Amazon.com, Inc. (NASDAQ:AMZN) are some Morgan Stanley stocks that are leading the race to gains in 2023.
Click to continue reading and see Morgan Stanley’s Top 5 Stock Picks For 2023.
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Disclosure: None. Morgan Stanley’s Top 15 Stock Picks For 2023 is originally published on Insider Monkey.
