Morgan Stanley says buy these defensive growth stocks as economy disappoints

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Morgan Stanley says buy these defensive growth stocks as economy disappoints
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The firm conducted a defensive growth screen of stocks that it said have shown relative strength both year-to-date and more recently.

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In an uncertain market environment, Morgan Stanley thinks investors can regain confidence with some large-cap defensive stocks. The firm screened for stocks that have shown relative strength both year-to-date and more recently, in terms of equal weight performance. All are members of the top 1000 by market cap universe, have outperformed on a year-to-date basis, and are classified as a growth stock based on Morgan Stanley's proprietary factor classification model.

An independent advocacy group of McDonald's owners has said the memo will be a "devastating financial blow" to its franchisees in the state. Still, Morgan Stanley analysts view the burger chain as a growth stock that is set to outperform in the coming months. Costco is another one of Morgan Stanley's picks.

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