Morgan Stanley's Adam Parker is one of the most bearish strategist on Wall Street. He expects the S&P 500 to fall to 1,434 by the end of the year.
But this is not to say the firm doesn't expect some stocks to do well.
Morgan Stanley recently published their list of Best Ideas from around the world.
The list included seven stocks from North America.
Calpine
Ticker:
CPN
Price Target:
$29.50
P/E ratio:
14.8
EPS CAGR:
20.1%
Industry:
Energy
On January 24, the Public Utility Commission of Texas held a meeting in to review two approaches to putting in place an "operating reserve demand curve," which would improve margins during tight supply-demand periods. This would greatly improve the supply-demand economics for energy supplier Calpine.
Source: Morgan Stanley
News Corp.
Ticker:
NWSA
Price Target:
$32.00
P/E ratio:
15
EPS CAGR:
19.2%
Industry:
Media
Ever since News Corp. parted ways with it's less profitable businesses, like Dow Jones, it's been performing better than ever before. Things going to really get a boost mid-2013, when it sheds the discount it's historically always traded at.
Source: Morgan Stanley
Canadian Pacific Railways
Ticker:
CP
Price Target:
$115.92
P/E ratio:
18.5
EPS CAGR:
21.7%
Industry:
Transportation
Despite a recent run on the stock, Morgan Stanley remains confident that the company will bounce back. The Canadian Pacific Railways' management's guidance indicates at least 40% EPS growth, conservative estimate. At the top end, an operating ratio of costs to revenue of 63% is possible, which would imply more than 30% EPS CGAR into 2016, far above other large cap transport companies.
Source: Morgan Stanley
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