Morgan Stanley’s top quality stocks to own for the long term
Mar. 13, 2025 1:58 PM ET
By: Monica L. Correa, SA News Editor
Morgan Stanley analysts updated their “30 for 2027,” a collection of their best long-term stock ideas based on sustainability, quality, and opportunity to widen their competitive advantage.
Michelle Weaver, U.S. thematic and equity strategist at Morgan Stanley, said investors should focus on high-quality stocks amid Wall Street’s recent tumorous trade.
“It makes sense to stay up the quality curve as the market continues to digest policy uncertainty,” Weaver said. “While the index has been challenged by declining earnings revisions breadth and policy changes, we still see plenty of opportunity at the single-stock level.”
Analysts said the highest-quality companies in their sectors are the ones likely to strengthen their sustainable competitive advantage. The criteria here also encompass business model, pricing power, cost efficiency, and growth, as well as return on operating assets, management’s strategy, capital structure, and shareholder remuneration.
Environmental, Social, and Governance (or ESG) factors are also looked at, as well as key risks and opportunities for each company.
Here are the “top 30 for 2027,” with data as of Tuesday:
- Amazon.com ( AMZN) – Revenue five-year CAGR: 11%
- Analog Devices ( ADI) – Revenue five-year CAGR: 1%
- Apple ( AAPL) – Revenue five-year CAGR: 4%
- Atlassian Corporation ( TEAM) – Revenue five-year CAGR: 22%
- Blackstone ( BX) – Revenue five-year CAGR: 12%
- Boston Scientific ( BSX) – Revenue five-year CAGR: 13%
- CBRE Group ( CBRE) – Revenue five-year CAGR: 7%
- Chipotle Mexican Grill ( CMG) – Revenue five-year CAGR: 13%
- Citigroup ( C) – Revenue five-year CAGR: 4%
- Citizens Financial Group ( CFG) – Revenue five-year CAGR: 4%
- Coca-Cola ( KO) – Revenue five-year CAGR: 4%
- Datadog ( DDOG) – Revenue five-year CAGR: 21%
- Ecolab ( ECL) – Revenue five-year CAGR: 5%
- Eli Lilly & Co ( LLY) – Revenue five-year CAGR: 27%
- EQT Corp ( EQT) – Revenue five-year CAGR: 45%
- Ferrari ( RACE) – Revenue five-year CAGR: 10%
- Howmet ( HWM) – Revenue five-year CAGR: 12%
- Iqvia Holdings ( IQV) – Revenue five-year CAGR: 5%
- Live Nation Entertainment ( LYV) – Revenue five-year CAGR: 13%
- MasterCard ( MA) – Revenue five-year CAGR: 12%
- Meta Platforms ( META) – Revenue five-year CAGR: 16%
- Microsoft ( MSFT) – Revenue five-year CAGR: 12%
- The Progressive Corp ( PGR) – Revenue five-year CAGR: 17%
- Shopify ( SHOP) – Revenue five-year CAGR: 24%
- Spotify Technology ( SPOT) – Revenue five-year CAGR: 16%
- Thermo Fisher Scientific ( TMO) – Revenue five-year CAGR: 2%
- Trane Technologies ( TT) – Revenue five-year CAGR: 9%
- TransUnion ( TRU) – Revenue five-year CAGR: 9%
- Visa ( V) – Revenue five-year CAGR: 11%
- Walmart ( WMT) – Revenue five-year CAGR: 5%
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