U.S. investment bank Morgan Stanley (MS) has revealed its list of stocks to buy in the current fourth quarter as we barrel toward year’s end.
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Analysts at Morgan Stanley say the latest stock picks are all companies that have “strong earnings revision momentum.” The team of analysts, led by Mike Wilson, Morgan Stanley’s chief U.S. equity strategist, adds that risks to stocks have been rising in recent months, creating a “historically opportunistic stock picking environment.”
Morgan Stanley’s top five stocks to buy now are Pinterest (PINS), Reddit (RDDT), Take-Two Interactive Software (TTWO), Burlington Stores (BURL), and Carvana (CVNA). With the exception of Burlington Stores, which is down about 6% on the year, each of the stock picks has performed strongly in 2025.
Q3 Earnings
Rounding out the top 10 stock picks by Morgan Stanley are Penske Auto Group (PAG), TJX Co. (TJX), Ulta Beauty (ULTA), Urban Outfitters (URBN), and Wayfair (W). Each of those stocks has also performed strongly year to date. Morgan Stanley’s picks are also notable for being heavily focused on retailers heading into the year-end holiday shopping season.
In a note to clients, the analysts at Morgan Stanley wrote that third quarter earnings that have just gotten underway will be important in driving share prices and investor sentiment towards the market. They also wrote that they won’t sound an “all-clear on the risk of a further near-term correction” until they see a “trade de-escalation” from the U.S. and China.
Is MS Stock a Buy?
The stock of Morgan Stanley has a consensus Moderate Buy rating among 10 Wall Street analysts. That rating is based on five Buy and five Hold recommendations issued in the last three months. The average MS price target of $174.90 implies 7.61% upside from current levels.
