32 stocks to buy while earnings decline: Morgan Stanley

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Morgan Stanley: Buy these 32 stocks to prepare for an unexpected earnings drop and more market volatility

and are banking on cuts this summer, which implies that they're expecting more stress for banks and the economy, according to Wilson.

"With bond markets questioning the Fed's dot plot, bond volatility has increased markedly," Wilson wrote."We think stocks are next as investors realize earnings guidance looks unrealistic."With weaker earnings and more market volatility ahead, Morgan Stanley recommends buying large, stable stocks in three defensive sectors: consumer staples, healthcare, and utilities.

Wilson screened for that criteria and found 32 stocks that stand out. All are US-based, have an overweight rating from Morgan Stanley analysts, are in one of the three defensive sectors the firm is bullish on, have a market value of at least $10 billion, and have low volatility as measured byBelow are the 32 overweight-rated US large-cap stocks that Wilson listed in his note along with the ticker, market capitalization, sector, industry, and beta for each.

 

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