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Morgan Stanley has arrived at a list of stocks that the consensus is most bullish on, and another on which it is most bearish.
The lists have been arrived at based on factors like sell-side opinion, institutional ownership, relative valuations, earnings expectations, long-term relative trailing performance and trading volumes of these stocks.
The list can be used as a means of identifying cases of mispricing, according to the report.
It said that while sometimes the consensus is right, a more bullish stance could also mean that the stock is less likely to see huge outperformance in the future.
Higher ownership could stunt growth and richer valuations could signify limited upsides.
On the other hand, if the earnings expectations are low, then that could lend support to the share price.
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These are 5 stocks that Morgan Stanley is bullish on..
Axis Bank
Axis Bank has a sound expansion strategy compared to industry peers along with a strong focus on new products. The bank also has huge potential to grow faster in comparison to other banks.
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Bank of Baroda
Bank of Baroda's (BoB's) customer base is rapidly increasing due to its consistent
During FY14, BoB was able to post strong growth of 20.4 per cent (y-o-y), despite sluggish growth registered by most banks.
A major part of this growth was driven by two initiatives in the past one year including setting up of a new vertical for mobilisation of deposit resources and also due focused efforts to diversify its loan-book in favour of retail, MSME and agriculture credit.
The bank has good growth prospects.
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IndusInd Bank
IndusInd Bank is one of the best performing mid-sized bank with superior growth and stable asset quality.
The bank has also posted good set of numbers in the March quarter of FY14.
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Maruti Suzuki
Maruti is one of the better bet in the four-wheeler sector and the stock is fairly valued at current levels .
This is the level to start accumulating the stock.
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These are five stocks on which Morgan Stanley is bearish on..
Reliance Industries
Due to the ongoing gas pricing issue, analysts seem to be cautious with RIL stock despite the energy giant posting over 13 per cent (quarter-on-quarter) rise in its Q1 profit in current financial year.
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United Spirits
United Spirits stock is rated as overweight at current levels.
The company needs to show up good growth in times to comes.
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HUL
The FMCG major (HUL) is constantly innovating new line of products to survive in a competitive market.
HUL chairman Harish Manwani has at the company's 81st annual general meeting said that the firm is constantly looking at initiatives and measures that will yield good growth for the company.
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Infosys
The market has been hoping for a turnaround that is visible to them.
However, with Vishal Sikka taking over as the CEO of Infosys, there are quiet a lot of hopes in the Street.
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Bajaj Auto
Bajaj Auto has reported a flat growth in the June quarter of current financial year.
The firm will have to bring down its costs to maintain cash flows.