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

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.