10 Best Stocks to Own for the Next 3 Years

Here is the full group of stocks from the “30 for 2019” list. We’ve paired the list with commentary from Jim Cramer if the stock is owned by his Action Alerts PLUS charitable trust portfolio.

APPLE

Morgan Stanley has an overweight rating and a target price of $135 on Apple.

apple

Apple’s expected five-year revenue growth rate (based on compound annual growth rate) is 6%. Its five-year EPS growth rate (also based on CAGR) is 11%, according to Morgan Stanley.

Apple’s price-to-earnings multiple based on 2016 EPS is 12.1, Morgan Stanley says.

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“Apple has arguably the world’s most valuable technology platform with over 1 billion active devices and the potential to deepen its ecosystem and capture more of its users’ time in areas such as autos, health, security, home and television. From a financial level, Apple is truly exemplary, generating 40%+ return on equity (ROE) and gross margins (GM) while sitting on over $200 billion of cash and margin debt,” according to Cramer, TheStreet’s founder and manager of the Action Alerts PLUS portfolio, and Jack Mohr, research director of Action Alerts PLUS.

“Its expanding ecosystem includes a $30 billion-a-year services business, new product categories such as its Watch, partnerships such as HealthKit, HomeKit and CarPlay and future opportunities in TV and autos). All of this, combined with its impeccable mobile phone leadership, provides Apple with a path toward double-digit annual sales growth and 15%-20% annual EPS growth long term,” they said.

AMAZON

Morgan Stanley has an overweight rating and a target price of $800 on Amazon.com .

amazon

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Amazon’s expected five-year revenue growth rate (based on compound annual growth rate) is 21%. Morgan Stanley said the company’s five-year EPS growth rate was “not meaningful.”

Amazon’s price-to-earnings multiple based on 2016 EPS is 89.4, Morgan Stanley says.

FACEBOOK

Morgan Stanley has an overweight rating and a target price of $140 on Facebook(FB) .

facebook

Facebook’s expected five-year revenue growth rate (based on compound annual growth rate) is 32%. Its five-year EPS growth rate (also based on CAGR) is 30%, according to Morgan Stanley.

Facebook’s price-to-earnings multiple based on 2016 EPS is 31, Morgan Stanley says.

“We like Facebook for its 1.5 billion users and combination of top-line and bottom-line growth in the tune of 40% and 30%, respectively,” according to Cramer, TheStreet’s founder and manager of the Action Alerts PLUS portfolio, and Jack Mohr, research director of Action Alerts PLUS.

VISA

Morgan Stanley has an overweight rating and a target price of $98 on Visa (V) .

visa

Visa’s expected five-year revenue growth rate (based on compound annual growth rate) is 9%. Its five-year EPS growth rate (also based on CAGR) is 13%, according to Morgan Stanley.

The company’s price-to-earnings multiple based on 2016 EPS is 28.2, Morgan Stanley says.

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“Visa benefits from secular growth into payments as consumers broadly shift away from cash. We expect future growth to come from the company’s recently secured deals with Costco (COST) , USAA and Fidelity, along with continued advancement into e-commerce (as it is embedded within Apple Pay). The acquisition of Visa Europe — set to close shortly — should accelerate growth within that region and prove sustainable in the long term,” according to Cramer, TheStreet’s founder and manager of the Action Alerts PLUS portfolio, and Jack Mohr, research director of Action Alerts PLUS.

ALPHABET

Morgan Stanley has an overweight rating on Alphabet’s (GOOGL) , with a target price of $900.

Alphabet’s expected five-year revenue growth rate (based on compound annual growth rate) is 17%. Its five-year EPS growth rate (also based on CAGR) is 18%, according to Morgan Stanley.

Alphabet’s price-to-earnings multiple based on 2016 EPS is 21.1, Morgan Stanley says.

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“We believe the market is discounting its seven-pronged growth drivers (seven businesses boast over 1 billion users); its double digit earnings and growth algorithm is accompanied by high FCF (free cash flow) generation and operational discipline,” according to Cramer, TheStreet’s founder and manager of the Action Alerts PLUS portfolio, and Jack Mohr, research director of Action Alerts PLUS.

T-MOBILE US

Morgan Stanley has an overweight rating and a target price of $47 on T-Mobile US(TMUS) .

t-mobile-us

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T-Mobile’s expected five-year revenue growth rate (based on compound annual growth rate) is 6%. Its five-year EPS growth rate (also based on CAGR) is 28%, according to Morgan Stanley.

T-Mobile’s price-to-earnings multiple based on 2016 EPS is 53.5, Morgan Stanley says.

SERVICE MASTER GLOBAL

servicemaster-global

Morgan Stanley has an overweight rating on ServiceMaster Global (SERV) , with a target price of $49.

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ServiceMaster’s expected five-year revenue growth rate (based on compound annual growth rate) is 6%. Its five-year EPS growth rate (also based on CAGR) is 18%, according to Morgan Stanley.

ServiceMaster’s price-to-earnings multiple based on 2016 EPS is 18.2, Morgan Stanley says.

Constellation Brands

brands

Morgan Stanley has an overweight rating and a target price of $184 on Constellation Brands (STZ) .

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Constellation’s expected five-year revenue growth rate (based on compound annual growth rate) is 9%. Its five-year EPS growth rate (also based on CAGR) is 16%, according to Morgan Stanley.

Constellation’s price-to-earnings multiple based on 2016 EPS is 24.7, Morgan Stanley says.

WhiteWave Foods

whitewave-foods

Morgan Stanley has an overweight rating on WhiteWave Foods (WWAV)  , with a target price of $45.

WhiteWave’s expected five-year revenue growth rate (based on compound annual growth rate) is 9%. Its five-year EPS growth rate (also based on CAGR) is 16%, according to Morgan Stanley.

WhiteWave’s price-to-earnings multiple based on 2016 EPS is 28.6, Morgan Stanley says.

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“We continue to like WWAV for the long term as we see upside in its robust innovation pipeline and growth opportunities within the consumer packaged-foods space — a truly unique asset,” Cramer, TheStreet’s founder and manager of the Action Alerts PLUS portfolio, and Jack Mohr, research director of Action Alerts PLUS, wrote in their most recent weekly roundup. “We believe WWAV’s products continue to resonate with customers as the healthy and organic food trends remain strong.”

 

 

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