Morgan Stanley recently published a list of its top picks for stocks exhibiting pricing power and declining inflation. It consists of 28 companies across all ten sectors. This week, we run a simple screen on the list for growth and high margins. We end up with two stocks in Consumer Discretionary and one each in Technology, Industrials, and Financials.
Screening Criteria
- 5-year EPS Growth > 5%
- Next 5-year Est. EPS Growth > 10%
- 5-year Sales Growth > 10%
- Gross Margin > 30%
Company Summaries
Chipotle Mexican Grill, Inc. (CMG)
Deere & Company (DE)
Lululemon Athletica Inc. (LULU)
MSCI Inc. (MSCI)
NVIDIA Corporation (NVDA)
Disclosure
This report is not a recommendation to buy or sell the named securities. We intend to elicit ideas about stocks meeting specific criteria and investment themes. Please read our disclosures carefully and do your own research before investing.
Michael Lebowitz, CFA is an Investment Analyst and Portfolio Manager for RIA Advisors. specializing in macroeconomic research, valuations, asset allocation, and risk management. RIA Contributing Editor and Research Director. CFA is an Investment Analyst and Portfolio Manager; Co-founder of 720 Global Research.
Follow Michael on Twitter or go to 720global.com for more research and analysis.
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