Morgan Stanley: These Are The 9 Best Stocks In America

Photo: flickr/rob-young

In its latest Investment Perspectives – North America research book, Morgan Stanley published its Best Ideas list. These are the 10 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 and a few that have not entered in the headlines much as of late, but Morgan Stanley’s analysts see upsides in all of them.

Union Pacific +16%

Ticker: UNP

Previous Close: $116.3

Price Target: $135

Dividend Yield: 2.1%

Price-to-Earnings Ratio: 14.4

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

Source: Morgan Stanley

Apple +23%

Ticker: AAPL

Previous Close: $598.9

Price Target: $738

Dividend Yield: 0.4%

Price-to-Earnings Ratio: 13.4

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

CBS +24%

Ticker: CBS

Previous Close: $30.6

Price Target: $38

Dividend Yield: 1.3%

Price-to-Earnings Ratio: 12.2

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

Teradata +25%

Ticker: TDC

Previous Close: $64.8

Price Target: $81

Dividend Yield: NA

Price-to-Earnings Ratio: 23.5

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

Source: Morgan Stanley

Penn National Gaming +28%

Ticker: PENN

Previous Close: $41.5

Price Target: $53

Dividend Yield: 0.0%

Price-to-Earnings Ratio: 16.6

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

VF Corp. +32%

Ticker: VFC

Previous Close: $136.1

Price Target: $180

Dividend Yield: 2.3%

Price-to-Earnings Ratio: 14.4

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

Schlumberger +45%

Ticker: SLB

Previous Close: $65.4

Price Target: $95

Dividend Yield: 1.5%

Price-to-Earnings Ratio: 15.3

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

BorgWarner +58%

Ticker: BWA

Previous Close: $63.2

Price Target: $100

Dividend Yield: 0.2%

Price-to-Earnings Ratio: 11.2

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

NRG Energy +69%

Ticker: NRG

Previous Close: $17.2

Price Target: $29

Dividend Yield: 1.1%

Price-to-Earnings Ratio: NM

Description: NRG operates as an integrated wholesales power generation and retail electricity company. It was founded in 1989 and is based in Princeton, New Jersey.

Source: Morgan Stanley

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.