WSC - Stocks with top pricing power across all sectors

2023-06-07 07:00:00 ET

Morgan Stanley has identified high-potential stocks across key sectors that exhibit strong pricing power amid declining inflation.

These companies should maintain or increase their prices, leading to improved profitability and market performance.

They have favorable market dynamics, competitive advantages, and market-leading positions that support their pricing power and potential for long-term growth, Morgan Stanley said.

Here are the stocks by sector and what Morgan Stanley's analysts say about them:

Communication Services ( XLC )

• Spotify ( NYSE: SPOT ): The company has maintained its product prices globally and across all tiers for over a decade, despite increasing its library of music and audio content.
• Disney ( DIS ): Disney's unique IP and brands support its long-term growth across its Parks and Media businesses, and its scaled investments generate a strong ROIC. However, its content assets are under-earning and undervalued as it transitions to media monetization.

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