Morgan Stanley Has 14 Convictions and Only Two Are Wrong

Morgan Stanley picked 14 stocks. Twelve go up. Two go down. That's a 14-stock list with a built-in alibi.

Call it conviction with a safety net. Call it hedging, but wearing a suit.

Analyst Michelle Weaver also noted that of the roughly 10% of S&P 500 companies that had reported, only 41% got a positive next-day reaction. So the bank is highly convinced about stocks in a market where most reports get punished. Bold. Like bringing an umbrella to a flood and calling it a boat.

Take Western Digital. Analyst Erik Woodring says expectations have reset too far after shares fell more than 32% in three months. Translation: it dropped, so it must be cheap. You've heard this from every guy at every bar who ever lost money on a falling knife.

Then there's TeraWulf. Morgan Stanley has an Overweight rating and a $65 target. Stocktwits retail sentiment is bullish with high message volume. High message volume. Thousands of strangers typing in all caps about a company that hosts computers.

Williams Companies rounds out the trio. It's a pipeline company that Morgan Stanley says will profit from AI power demand. Somewhere a gas pipe is being called a growth story and nobody is laughing.

The chart doesn't care about any of this. Price already knows what Morgan Stanley is about to tell you. By the time the note hits your screen, the people who wrote it have finished lunch and sold to you.

You'll buy these on Thursday. You'll hold through the print. Then Western Digital will gap down on a beat, and you'll tell your spouse it's a long-term position.

Morgan Stanley is 86% sure about its picks. You're 100% sure about your own, and you're named after a cartoon frog.

Photo by Sven Piper on Unsplash