GOOGL - Morgan Stanley cuts Comcast adds Becton Dickinson to its model portfolio

2023-04-06 11:09:09 ET

Morgan Stanley Wealth Management updated its equity model portfolio, including changing weights in a few big names.

The team added Becton Dickinson ( NYSE: BDX ) to its holdings "given its strong positioning in healthcare services with idiosyncratic opportunities driving recurring revenue and margin expansion amid strategic M&A," according to Senior Investment Strategist Daniel Skelly.

They closed out Comcast ( NASDAQ: CMCSA ) "as the company lacks a clear catalyst while industry competition and cyclical risk remain elevated."

And they boosted their position in UnitedHealth ( UNH ) "due to continued vertical integration and market share growth reinforcing its leading position in the health insurance and care industry."

They also adjusted stocks based on the "portfolio construction process, which seeks to better risk manage the model."

They boosted weights in Rockwell Automation ( ROK ), BlackRock ( BLK ) and Amazon ( AMZN ) and cut weights in J.P. Morgan Chase ( JPM ) and Qualcomm ( QCOM ).

The full portfolio by sector is below:

("Relative to Benchmark Weight reflects the Equity Model Portfolio Solutions ( MPS ) team’s assessment of position sizing, relative to the relevant security’s weight. A for Above corresponds to an internally held portfolio weight that is 200bps or greater above the security’s corresponding weight in the benchmark index; I for In-Line corresponds to an internally held portfolio weight that is within 199bps above or below the security’s corresponding weight in the benchmark index; B for Below corresponds to an internally held portfolio weight that is 200bps or greater below the security’s corresponding weight in the benchmark index.")

Communication Services ( XLC ) - S&P 500 weight 8.2%

• Alphabet ( GOOGL ), relative benchmark weight I, Quant Rating Strong Buy , SA Analyst Rating Buy
• T-Mobile US ( TMUS ), A, QR Strong Buy , AR Buy
• Verizon ( VZ ), I, QR Hold , AR Buy

Consumer Discretionary ( XLY ) - 9.9%

• Amazon ( AMZN ), I, QR Hold , AR Buy
• Home Depot ( HD ), I, QR Hold , AR Hold
• Nike ( NKE ), I, QR Hold , AR Hold
• Tesla ( TSLA ), I, QR Hold , AR Buy

Consumer Staples ( XLP ) - 7.3%

• Costco Wholesale ( COST ), I, QR Hold , AR Hold
• Estee Lauder ( EL ), I, QR Hold , AR Hold
• Coca-Cola ( KO ), I, QR Hold , AR Hold
• Monster Beverage ( MNST ), I, QR Hold , AR Hold
• Procter & Gamble ( PG ), I, QR Hold , AR Hold

Energy ( XLE ) - 4.8%

• Exxon Mobil ( XOM ), I, QR Hold , AR Hold

Financials ( XLF ) - 12.8%

• BlackRock ( BLK ), A, QR Hold , AR Buy
• Berkshire Hathaway ( BRK.B ), I, QR Strong Buy , AR Buy
• J.P. Morgan ( JPM ), A, QR Hold , AR Buy
• Mastercard ( MA ), I, QR Hold , AR Buy
• Visa ( V ), I, QR Hold , AR Buy

For further details see: