Morgan Stanley: 4 Top Stocks To Protect Your Portfolio No Matter What

Morgan Stanley has been busy recently. A team of over 30 analysts has just put together a list of the best defensive sectors, based on almost 25 years of market data. These are the sectors that have outperformed even when growth slows. And the best part: the firm has also selected its top stock pick in each of these sectors.

“We think a rotation to more defensive market leadership is coming later this year and into 2019” Morgan Stanley analysts wrote. “Before that rotation begins in earnest, we test traditional notions of defensiveness and assess if what was defensive in the past will continue to be so in the future.”

Here we delve into four sector stock picks highlighted by the firm. These are stocks that can still deliver even in times of volatility or slowing returns. We also use TipRanks to delve down into why these four stocks also have the backing of the Street in general. Let’s take a closer look now:

Integrated oil and gas: Chevron Corp 

“Beyond a bullish outlook on oil, we see additional support from a new ‘Golden Age’ for Refining as underinvestment in refining, slippages in capacity adds and overdone concerns on long-term demand set the stage for the refining upcycle to inflect into a golden age until 2020.”

The firm lists oil giant Chevron (NYSE:CVX) as a top pick. And this bullish take is mirrored by the Street. As the graph below shows, CVX has a ‘Strong Buy’ analyst consensus rating. The stock has received 5 top analyst buy ratings vs just 1 hold rating in the last three months. Meanwhile the $140 price target indicates 13% upside potential from current levels.

“(Chevron’s) positive first-quarter result was an encouraging sign that Chevron is executing well and we remain constructive on the company’s long-term, shareholder-friendly plan,” Barclays’ Paul Cheng wrote last month. He boosted his price target on Chevron to $145 (12% upside potential).

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Disclaimer: TipRanks is an independent cloud based service that measures and ranks digitally published financial advice. TipRanks' natural language processing (NLP) algorithms aggregate and ...

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