XLC - Top stocks insulated from risk with recession not fully priced in - Morgan Stanley
Multiples and earnings estimates are falling, but a recession is yet to be fully priced, Morgan Stanley says. The S&P 500 (SP500) (NYSEARCA:SPY) would have to fall to 3,000, about 18% from current levels to fully reflect a recession, strategist Mike Wilson wrote in a note Tuesday. "The Bear market will not be over until recession arrives or the risk of one is extinguished," Wilson said. "Given the macro turmoil of the past few weeks, we wanted to provide a screen of stocks where earnings are relatively insulated from this risk and have the potential to see upward revisions," he said. "In a world where both Fire (rate hikes) and Ice (growth slowdown) are dominating the market, it is important to look for stocks that have idiosyncratic earnings stories." With that in mind Morgan Stanley analysts identified stock where there is high conviction earnings will be revised upward going into
For further details see:
Top stocks insulated from risk with recession not fully priced in - Morgan Stanley