From e-commerce firm Amazon to pharmaceutical giant Eli Lilly , Morgan Stanley’s top stocks to own for the next 12 months spans a wide array of sectors. The firm compiled its “Vintage Values” picks for 2025 in a Wednesday note, which encompasses “mid- to large-caps likely to realize superior risk-adjusted returns over the next year.” The majority of Morgan Stanley’s picks are tilted toward growth, with 67% of the picks meeting that classification. Stocks are on pace to end the week higher, with the S & P 500 earning its fourth-straight winning session heading into Friday. The broad market index has gained more than 3% this week, while the Nasdaq Composite and Dow Jones Industrial Average have advanced 5% and nearly 2%, respectively. Historically, September is a volatile month for stocks and has ended lower over the past four years. Here’s a look at some of the stocks that Morgan Stanley says are worth owning over the next year. Amazon stock has added 23% in 2024. Analyst Brian Nowak’s $210 per share price target implies roughly 12% upside from Thursday’s close. “Amazon’s high-margin businesses continue to allow Amazon to drive greater profitability while still continuing to invest,” Nowak said. The analyst also highlighted Amazon Prime membership growth as a driver of recurring revenue. Nowak also noted that adoption of Amazon’s cloud services is approaching an inflection point. AMZN YTD mountain Amazon stock. “Advertising serves as a key area for both further growth potential and profitability flow-through,” he added. Eli Lilly also made the list. Shares of the Alzheimer’s and diabetes drug maker have surged 60% in 2024. Analyst Terence Flynn’s $1,106 price target forecasts 18% upside for Eli Lilly’s shares. LLY YTD mountain Eli Lilly stock. “LLY has the most robust new product cycle (and hence growth) outlook in Pharma as the company could launch five new drugs over the next two years (across large end markets such as diabesity, Alzheimer’s disease, cancer and immunology),” Flynn said. The analyst also posits that the company’s new forthcoming product launches, as well as help from sales of its weight loss drug Zepbound and type 2 diabetes treatment Mounjaro, could boost Eli Lilly’s top line by more than 100%.
