Morgan Stanley names cash-rich global stocks with 'better downside protection'

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Morgan Stanley screened for European stocks with strong balance sheets, lots of cash or high shareholder returns. CNBC Pro takes a look at 20.

Morgan Stanley named a raft of European stocks with strong balance sheets, lots of cash or high shareholder returns. The bank said the latest quarterly results showed a slowdown in revenue, earnings and cash flow "as companies brace for higher interest rates and a less certain macro environment," but it identified several that appear to be bucking the trend in a research note seen by CNBC on Wednesday.

High cash flow and shareholder returns The bank also screened for companies with "resilient high free cash flow." "Self-financing companies should be better able to weather any prolonged macroeconomic weakness, deploying capital effectively and seizing opportunities that come along the way," Morgan Stanley said. Its list included oil companies BP and TotalEnergies and utilities firm Centrica , as well as advertising groups WPP and Publicis Groupe .

 

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