Our Morgan Stanley stock recommendations are designed to help you increase your financial health in the coming months as the bank expects these stocks to surge.
The past few weeks have seen the stock market crumble with crypto sharing the same fate. Last Friday, both Nasdaq and the S&P 500 posted their sixth consecutive weekly loss. High inflation and geopolitical instability leading to a shaky economic situation have impacted stock futures. As the world struggles to make sense of the losses, financial services giant Morgan Stanley has decided to turn the crisis into an opportunity for its clients.
The below-mentioned Morgan Stanley stock recommendations have been curated by financial experts who believe these stocks are about to surge. In early May, Morgan Stanley’s Chief Investment Officer for Wealth Management, Lisa Shalett shared that innovation, deglobalization, decarbonization, and the changes in the US labor market will impact stocks in the coming year.
In a blog piece on Morgan Stanley stock news, she advises investors to look for companies that increase technology adoption. She says that “investors need to be positioned not for a dearth of economic growth but an abundance of it.”
Way back in January, while discussing stock news Morgan Stanley admitted that investors must be prepared to deal with an increase in market volatility as the world battles the Omicron Covid-19 variant. We have compiled the top three Morgan Stanley stock recommendations for you, dear reader, and mentioned why we think they are stocks about to surge.
1. SI-Bone
Listed on Nasdaq as SIBN, SI-Bone as the name suggests, deals with the sacroiliac joint (SI) that is located in the pelvis. The company, SI-Bone is one of the upcoming leaders in the health industry as it is well-known for its minimally invasive surgical procedures. They are world-renowned for their iFuse Implant System that deals with sacroiliac joint disorders. This implant device is a favorite among medical professionals as it features smaller incisions and faster recovery times. They combine medical expertise with technology for surgical treatment of musculoskeletal disorders of the sacropelvic anatomy. In Q1 of 2022, the company’s worldwide revenue grew by 22% to reach $20.4 million. Gross profit stood at $18.2 million in comparison to $14.8 million it generated in profits for the same quarter last year. Although its EPS came in negative, Morgan Stanley analyst Drew Ranieri recommends the stock as he believes, “the recovery trends exiting the quarter remain promising for the balance of 2022, and we see a positive setup for upside through the balance of the year if pandemic procedure pressures continue to abate.”
The MS stock quote reveals that the stock currently sells for around $12.50 and their $27.50 average price target indicates a bullish outlook with room for growth of around 120%.
2. ZoomInfo Technologies (ZI)
The Covid-19 pandemic highlighted the fact that there is no moving forward without adapting to technology. Morgan Stanley stock news, in turn, highlighted ZoomInfo, an American subscription-based software company that sells information about business people and companies to businesses. This information is highly valued by those in sales and marketing functions. In June 2020, it became a publicly traded company on Nasdaq with the symbol ZI. The company made its way to the list of Morgan Stanley stock recommendations as it has continued to grow its business, shortening sales cycles and increasing rates with data. The company also added digital marketing company Comparably to its kitty.
For Q1 of 2022, the company posted a revenue of $241.7 million, an impressive growth of 58% year-on-year (YoY). For this fiscal year, the company expects its revenue to touch $1.06 billion to $1.07 billion. Morgan Stanley analyst Keith Weiss asserts his backing for this stock, saying, “we see ZI as one of our top ideas into 2022, as the company continues to deliver near 50% organic growth supplemented with best-in-class profitability.” ZI stocks have an average price target of $71.08.
3. Palo Alto Networks (PANW)
American cybersecurity company Palo Alto Networks was the equivalent of Covid-19 vaccine for tech companies. Its advanced firewalls and cloud-based offerings protect its customers from malware and cyber-attacks. Palo Alto Networks has made its way to the list of hot stocks to buy as it has continued to perform well and keep customers happy. For the fiscal year 2022, its revenues grew by over 30% YoY to reach $1.3 billion.
The company predicts that its total billings will be around $6.8 billion. In comparison, its top line for fiscal year 2021 came to $4.25 billion. Morgan Stanley stock news listed PANW as one of the companies to watch out for in 2022. Analyst Hamza Fodderwala believes this stock is set to gain momentum as, “Security remains a top priority due to rising cyber threats and is by far the most defensive area of spend within IT budgets.” He adds, “we view PANW as one of the most attractive risk/reward opportunities in software.”
Currently, MS Stock quote shows that PANW stocks retail for around $491.01 and sets a price target of around $823.
Morgan Stanley stock recommendations are considered the holy grail of investments by both professionals and amateurs in the financial world. The above-mentioned stocks are expected to surge over 60% from their current levels in the coming year. So, if you are looking for some deep pockets, these are the stocks that should make it to your must-buy list.
