In the near-term, investors are having a tough time deciding how to position themselves with stocks near their all-time highs.
But those thinking longer-term are probably more concerned about which stocks they should be in.
Morgan Stanley just published a massive 32-page report for its "20 For 2016," a list of 20 stock picks.
"The main criterion is sustainability — of competitive advantages, business model, pricing power, cost efficiency, and growth," the analysts wrote.
"We are taking a long term view," they continued. "There was no prerequisite in our analysis that they be rated Overweight, nor specific assumptions about where we are in the economic cycle or any other valuation considerations. Our driving principle was to create a list of companies whose business models and market positions would be increasingly differentiated by 2016."
We pulled the 20 stocks and highlighted the 5 year revenue and earnings growth rates. We also included one of the many reasons why the analysts picked each stock.
Amazon.com
Ticker: AMZN
Revenue Growth: 22%
EPS Growth: 41%
Sector: Consumer Discretionary
"Amazon.com has the largest scale in fulfillment assets of any retailer, online or offline."
Source: Morgan Stanley
American Tower
Ticker: AMT
Revenue Growth: 10%
EPS Growth: 29%
Sector: Telecom Services
"We believe that LTE rollouts should continue to drive domestic lease volumes, as growth from overseas markets with more attractive lease-up opportunities provides upside."
Source: Morgan Stanley
BlackRock
Ticker: BLK
Revenue Growth: 8%
EPS Growth: 14%
Sector: Financials
"We view BLK as a long-term winner in asset management due to its industry-leading ETF platform and strength in alternative and multi-asset classes."
Source: Morgan Stanley
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