Morgan Stanley's 9 favourite Stocks In America

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Morgan Stanley recently published its Best Ideas report, which includes an update to its top stock picks in the world.These are the nine very best stocks money can buy in the U.S. based on “favourable risk-reward profiles” and “out-of-consensus thinking.”

The list has a few hot stocks that have spent time in the headlines, and a few that have managed to fly under the radar.

Each stock has a double-digit return opportunity.

CBS +13% potential return

Ticker: CBS

Price: $33.76

Price Target: $38

Dividend Yield: 1.4%

Price-to-Earnings Ratio: 11.9

Description: CBS operates as a mass media company internationally. It was founded in 1986 and is based in New York, New York.

Source: Morgan Stanley

Union Pacific +14% potential return

Ticker: UNP

Price: $123.61

Price Target: $141

Dividend Yield: 2.1%

Price-to-Earnings Ratio: 14.0

Description: Union Pacific provides rail transportation services in North America. It was founded in 1862 and is headquartered in Omaha, Nebraska.

Source: Morgan Stanley

Urban Outfitters +15% potential return

Ticker: URBN

Price: $31.26

Price Target: $36

Dividend Yield: N/A

Price-to-Earnings Ratio: 25.3

Description: Urban Outfitters operates as a retailer under the Urban Outfitters, Anthropologie, Free People, Terrain, ad BHLDN brand names. It was founded in 1970 and is based in Philadelphia, Pennsylvania

Source: Morgan Stanley

Teradata +19% potential return

Ticker: TDC

Price: $68.35

Price Target: $81

Dividend Yield: N/A

Price-to-Earnings Ratio: 24.5

Description: Teradata provides analytic data solutions worldwide. The company was founded in 1979 and is headquartered in Dayton, Ohio.

Source: Morgan Stanley

VF Corp. +20% potential return

Ticker: VFC

Price: $150.5

Price Target: $180

Dividend Yield: 2.1%

Price-to-Earnings Ratio: 15.5

Description: V.F. Corp designs and manufactures various apparel and footwear products primarily in the United States and Europe. It was founded in 1899 and is headquartered in Greensboro, North Carolina.

Source: Morgan Stanley

Apple +21% potential return

Ticker: AAPL

Price: $597.17

Price Target: $720

Dividend Yield: 0.4%

Price-to-Earnings Ratio: 13.9

Description: Apple designs and sells mobile communications and media devices. Apple is based out of Cupertino, California and was founded in 1976.

Source: Morgan Stanley

Schlumberger +31% potential return

Ticker: SLB

Price (7/24): $72.73

Price Target: $95

Dividend Yield: 1.6%

Price-to-Earnings Ratio: 15.7

Description: Schlumberger supplies technology, integrated project management, and information solutions to the oil and gas exploration industries. It was founded in 1926 and is based in Houston, Texas.

Source: Morgan Stanley

Penn National Gaming +34% potential return

Ticker: PENN

Price: $39.60

Price Target: $53

Dividend Yield: 0.0%

Price-to-Earnings Ratio: 15.5

Description: Penn owns and manages gaming properties in the United States and Canada. It was founded in 1972 and is based in Wyomissing, Pennsylvania.

Source: Morgan Stanley

BorgWarner +40% potential return

Ticker: BWA

Price (7/24): $60.54

Price Target: $95

Dividend Yield: 0.2%

Price-to-Earnings Ratio: 11.1

Description: BorgWarner manufactures and sells engineered automotive systems and components for powertrain applications worldwide. It was founded in 1987 and is headquartered in Auburn Hills, Michigan.

Source: Morgan Stanley

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