MORGAN STANLEY: These Are The 7 Best Stocks In America

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Morgan Stanley’s Adam Parker is one of the most bearish strategist on Wall Street.  He expects the S&P 500 to fall to 1,434 by the end of the year.But this is not to say the firm doesn’t expect some stocks to do well.

Morgan Stanley recently published their list of Best Ideas from around the world.

The list included seven stocks from North America.

Calpine

Ticker:
CPN

Price Target:
$29.50

P/E ratio:
14.8

EPS CAGR:
20.1%

Industry:
Energy

On January 24, the Public Utility Commission of Texas held a meeting in to review two approaches to putting in place an 'operating reserve demand curve,' which would improve margins during tight supply-demand periods. This would greatly improve the supply-demand economics for energy supplier Calpine.

Source: Morgan Stanley

News Corp.

Ticker:
NWSA

Price Target:
$32.00

P/E ratio:
15

EPS CAGR:
19.2%

Industry:
Media

Ever since News Corp. parted ways with it's less profitable businesses, like Dow Jones, it's been performing better than ever before. Things going to really get a boost mid-2013, when it sheds the discount it's historically always traded at.

Source: Morgan Stanley

Canadian Pacific Railways

Ticker:
CP

Price Target:
$115.92

P/E ratio:
18.5

EPS CAGR:
21.7%

Industry:
Transportation

Despite a recent run on the stock, Morgan Stanley remains confident that the company will bounce back. The Canadian Pacific Railways' management's guidance indicates at least 40% EPS growth, conservative estimate. At the top end, an operating ratio of costs to revenue of 63% is possible, which would imply more than 30% EPS CGAR into 2016, far above other large cap transport companies.

Source: Morgan Stanley

CBS Corporation

Ticker:
CBS.N

Price Target:
$42.12

P/E ratio:
13.6

EPS CAGR:
15%

Industry:
Media

CBS will most likely get really aggressive about optimising their balance sheet and existing assets, predicts Morgan Stanley, which will likely boost earnings.

Source: Morgan Stanley

Limited Brands

Ticker:
LTD.N

Price Target:
$48.28

P/E ratio:
11.7

EPS CAGR:
N/A

Industry:
Retail

Morgan Stanley is bullish on Limited Brands, which is in the speciality retail business. They own brands like Victoria's Secret and Bath And Body Works.

Source: Morgan Stanley

Teradata

Ticker:
TDC.N

Price Target:
$66.14

P/E ratio:
21

EPS CAGR:
12.3%

Industry:
Technology

Teradata is the one of the largest providers of database warehousing services and big data analytics, the demand for which are only going to get bigger and bigger.

Source: Morgan Stanley

FMC Technologies

Ticker:
FTI.N

Price Target:
$47.11

P/E ratio:
19.7

EPS CAGR:
N/A

Industry:
Energy, Technology

FMC Technologies provides tech solutions for the energy industry, and manufactures highly specialised products used in energy exploration and production, like sub sea production and processing systems, surface wellhead systems, measurement systems.

Source: Morgan Stanley

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