Morgan Stanley names its ‘overweight’ stocks to buy as earnings season approaches

The Federal Reserve's decision last week to raise interest rates for the first time since 2023 has stirred fears that the economy is moving into the later stages of the business cycle. Morgan Stanley sees something different: a "classic" mid-cycle environment that could increasingly favor large-cap, high-quality stocks as earnings season approaches.

"Stick with large cap quality stocks," Morgan Stanley strategist Mike Wilson wrote in a Monday note reviewed by Business Insider .

Jeff Bezos backs a platform that lets anyone invest in rental homes for as little as $100 — 6 ways to build wealth like a landlord without actually being one

Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake. Here's what it is and 3 simple steps to fix it ASAP

A single line on your car insurance policy could be inflating your premium by up to 30% — here's what to change

The bank identified 15 major stocks that fit its quality criteria and carry an "overweight" rating from its analysts, including chipmakers Nvidia (NASDAQ: NVDA) and Micron Technology (NASDAQ: MU), tech companies Apple (NASDAQ: AAPL) and SanDisk (NASDAQ: SNDK) and credit giants Visa (NYSE: V) and Mastercard (NYSE: MA).

The rest of the list spans several sectors, including consumer staples, retail, health care, technology, semiconductor equipment, software and travel.

Among them are Costco (NASDAQ: COST), Coca-Cola (NYSE: KO), Lam Research (NASDAQ: LRCX), Arista Networks (NYSE: ANET), Gilead Sciences (NASDAQ: GILD), Seagate Technology (NASDAQ: STX) and Booking Holdings (NASDAQ: BKNG), along with the beaten-down UnitedHealth (NYSE: UNH) and ServiceNow (NYSE: NOW), which was caught up in the broader software selloff earlier this year.