Morgan Stanley's 57 Top Quality Growth Stocks To Outperform in 2024

Morgan Stanley published a list of 57 quality growth stocks that are likely to perform well in 2024. The analysts' premise is based on a slowdown in both growth and inflation, along with an expectation of Federal Reserve rate cuts. In such conditions, their data showed that quality growth stocks should outperform.

Furthermore, they continue to believe that growth will trump value in terms of returns this year, predicting a potential double-digit relative outperformance of quality growth over lower-quality cyclicals. They also believe that positive earnings revisions for quality growth stocks will further propel their growth.

There are many ways to determine quality. One way is to rely on Morningstar's moat ratings. Stocks that have either a 'wide' or 'narrow' moat rating are typically considered higher quality.

Valuations are also crucial, even when purchasing quality stocks. Given that the major US indices have reached record highs, many stocks are no longer priced reasonably. Investors should exercise prudence and maintain discipline to avoid overpaying, adhering to a margin of safety.

I have applied both the Morningstar moat ratings and analysts' valuations, and below is the list of stocks with their corresponding data: