US Equity Strategy Vintage Values 2025-110286523

M IdeaUS Equity Strategy | North AmericaVintage Values 2025 Morgan Stanley & Co. LLCMichelle M. Weaver, CFAEquity Strategist Michelle.M.Weaver@morganstanley.com +1 212 296-5254 Michael J WilsonEquity Strategist M.Wilson@morganstanley.com +1 212 761-2532 Andrew B PaukerEquity Strategist Andrew.Pauker@morganstanley.com +1 212 761-1330 Diane Ding, Ph.D.Quantitative Strategist Qian.Ding@morganstanley.com +1 212 761-6758 Nicholas Lentini, CFAEquity Strategist Nick.Lentini@morganstanley.com +1 212 761-5863 Vintage Values 2025 assembles the best insights of Morgan Stanley Research for stocks to hold for 12 months: mid- to large-caps likely to realize superior risk-adjusted returns over the next year.For ‘Vintage Values 2025,' our 15th annual iteration in the series, Morgan Stanley Research’s Stock Selection Committee (SSC) wove together fundamental and quantitative analyses to identify our top ideas. We began by asking each of our North America analysts for their top recommendation for a one-year buy-and-hold investment horizon; more than 50 names were suggested by our analysts. The SSC, in conjunction with our US Equity Strategy team, considered each of these companies' macro exposure, industry positioning, valuation, and, crucially, the risk-reward profile, paying particular attention to the skew of the analysts’ Bull- and Bear-Case valuation estimates. The SSC also considered each stock’s ranking within our Quantitative Equity Strategy team’s Quality Score. Further, our Global Sustainability Research team worked with the SSC to integrate Environmental, Social, and Governance (ESG) analysis into the selection process. In evaluating the makeup of the Vintage Values list, the SSC also considered the sector weighting and style recommendations of our US Equity Strategy team. Our ‘Vintage Values 2024’ list produced an 18.32% return over the period from September 6, 2023 to September 10, 2024, underperforming the S&P 500 by 602 basis points over that time frame. (See inside for more detail regarding Vintage Values 2024, as well as important disclosures).Amazon.comLineageAppleLive Nation EntertainmentBank of AmericaM&T Bank Corp.Boston ScientificNVIDIAConstellation EnergyServiceNowEli LillyVisaGE VernovaWalmartGeneral DynamicsMorgan Stanley does and seeks to do business with companies covered in Morgan Stanley Research. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of Morgan Stanley Research. Investors should consider Morgan Stanley Research as only a single factor in making their investment decision.For analyst certification and other important disclosures, refer to the Disclosure Section, located at the end of this report.September 11, 2024 08:01 PM GMTM Idea2Additional ContributorsM IdeaMorgan Stanley Research3Vintage Values 2025: Financial SummaryExhibit 1:Key Financial DataSource: ModelWare and Thomson Reuters, data as of 9/10/2024Adjusted beta is the 3 year weekl