Morgan Stanley is advising investors to shift toward quality stocks as the market undergoes a mid-cycle transition, according to chief U.S. equity strategist Mike Wilson. The bank favors companies with high free-cash-flow yield, low earnings-per-share variability, strong balance sheets and high margins. Coca-Cola shares jumped more than 4% after its latest earnings report, with a 2.41% dividend yield. SLB has surged 31% year to date and offers a 2.35% dividend yield. Morgan Stanley maintains its overweight rating on these quality names.
Source: Read the original article
