Investment bank Morgan Stanley updates its list of Secular Growth Stocks twice a year. The list includes stocks of fast-growing companies, augmenting?? market share, have competitive advantages and excellent fundamental data.
Morgan Stanley analyzed the characteristics of 1,500 companies before and after a severe epidemic. Here's what the bank was looking at:
- The company entered the group of ascending 16 areas before a strong epidemic.
- The company's revenue grew during 12 areas before a strong epidemic.
- According to expectations, the company's revenue will grow in 2022-2023..
- The company has a rating of "equal" or "better than the market".
- The company's revenue and revenue estimates are above the sector average.
One of the companies on the list is an online platform for the sale and purchase of used vehicles Carvana. According to Morgan Stanley, the company can become one of the largest used car dealer in the state: “Carvana digital business with full vertical integration, from software to repair and recovery centers, gives a good service with the ability to scale”.
During a strong epidemic, the demand for used cars has increased. During the year, Carvana shares gained 125%, and for the past 5 — 2953%.
The bank also highlights software development for online stores Shopify. General development of online trading and a number of other trends, according to Morgan Stanley, play into the hands of the company.
Last year, due to quarantine restrictions, almost all companies began to develop the direction of electric commerce. Shopify Securities Up Sixty-Eight Percent Over the Year, behind 5 years - on 4695%.
Stocks from the list of Secular Growth Stocks
| Ticker | Average annual revenue growth in 2020-2023 | |
|---|---|---|
| DraftKings | DKNG | 52,5% |
| Tesla | TSLA | 46,0% |
| Carvana | CVNA | 44,7% |
| Shopify | SHOP | 37,4% |
| Farfetch | FTCH | 33,9% |
| FB | 25,6% | |
| Five Below | FIVE | 24,6% |
| Lululemon | LULU | 23,4% |
| Alphabet | GOOGL | 21,8% |
| Amazon | AMZN | 21,4% |
| Chewy | ALL | 19,5% |
| Chipotle Mexican Grill | CMG | 17,7% |
| Mastercard | MA | 16,6% |
| Apple | AAPL | 13,4% |
| Costco Wholesale | COST | 9,0% |
Ticker
DKNG
Average annual revenue growth in 2020-2023
52,5%
Tesla
Ticker
TSLA
Average annual revenue growth in 2020-2023
46,0%
Carvana
Ticker
CVNA
Average annual revenue growth in 2020-2023
44,7%
Shopify
Ticker
SHOP
Average annual revenue growth in 2020-2023
37,4%
Farfetch
Ticker
FTCH
Average annual revenue growth in 2020-2023
33,9%
Ticker
FB
Average annual revenue growth in 2020-2023
25,6%
Five Below
Ticker
FIVE
Average annual revenue growth in 2020-2023
24,6%
Lululemon
Ticker
LULU
Average annual revenue growth in 2020-2023
23,4%
Alphabet
Ticker
GOOGL
Average annual revenue growth in 2020-2023
21,8%
Amazon
Ticker
AMZN
Average annual revenue growth in 2020-2023
21,4%
Chewy
Ticker
ALL
Average annual revenue growth in 2020-2023
19,5%
Chipotle Mexican Grill
Ticker
CMG
Average annual revenue growth in 2020-2023
17,7%
Mastercard
Ticker
MA
Average annual revenue growth in 2020-2023
16,6%
Apple
Ticker
AAPL
Average annual revenue growth in 2020-2023
13,4%
Costco Wholesale
Ticker
COST
Average annual revenue growth in 2020-2023
9,0%
