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Morgan Stanley Unveils Deflation Enablers Stock Buy List (NASDAQ:TER)

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Persistent inflation will lead to transformational investments in all sectors, according to Morgan Stanley.

“While cyclical forces tend to discourage investment in an uncertain macroeconomic environment, we believe structural changes in demographics, energy policy and security, and an aging capital base make technologies focused on cost reduction and productivity more valuable,” analyst Joshua Pokrzywinski wrote in a note.

“By focusing on stocks that enable this productivity and cost reduction through automation, efficiency or their own declining cost curves while maintaining strong barriers to entry and attractive risk/reward , we’ve created a Deflation Enabler shopping list,” he said.

A deflation facilitator is a business that produces tangible cost savings for customers whose costs are rising due to inflation or scarcity, Joshua Pokrzywinski added.

The index significantly outperformed the MSCI World Index (URTH) from July 2019 to January 22, but has lagged since the start of the year.

The list by sub-sector is as follows:

  1. Fanuc (OTCPK:FANUY)
  2. Teradyne (NASDAQ:TER)
  3. Trane Technologies (TT)
  4. Smart Rent (SMRT)
  5. NCR (NCR)
  1. Appian (NASDAQ: APPN)
  2. Salesforce (CRM)
  3. ServiceNow (NOW)
  4. UiPath (PATH)
  • Automotive, Logistics & Mobility
  1. ArcBest (ARCB)
  2. Knight-Swift (KNX)
  3. Schneider National (SNDR)
  4. Tesla (TSLA)
  5. TuSimple (TSP)
  6. Werner (WERN)
  7. TFI International (TFII)
  8. United States Xpress (USX)
  9. XPO (XPO)
  • Clean and alternative energy
  1. AES (AES)
  2. Cheniere (LNG)
  3. LONGi
  4. New Fortress (NFE)
  5. Power socket (PLUG)
  6. Shoals (SHLS)
  7. Sunrun (RUN)
  • Diagnosis and drug discovery
  1. Certara (CERT)
  2. Eurofins
  3. Exscientia (EXAI)
  4. Schrödinger (SDGR)
  5. Veeva Systems (VEEV)
  1. II-VI (IIVI)
  2. Wolf Speed ​​(WOLF)
  1. AMEC
  2. Hua Hong (OTCPK: HHUSF)
  3. Nuvoton
  4. Realtek (OTCPK:RLTKF)
  5. Star Power
  6. Taiwan Semiconductor (TSM)
  7. Yangjie
  1. Autodesk (ADSK)
  2. Dassault (OTCPK: DASTY)
  3. Microsoft (MSFT)
  4. Samsara (IoT)
  5. SAP (SAP)
  • Supply chain efficiency (software)
  1. C3.ai (AI)
  2. Palantir (PLTR)
  3. Snowflake (SNOW)
  1. BT
  • Cullen Roche of SA wrote that the risk of deflation is now greater than that of prolonged inflation.