The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK (Insider Monkey) -- Morgan Stanley Research analysts published a report titled "50 for 2015"on Dec. 15, 2011. They have chosen Morgan Stanley's top stocks for 2015 by trying to identify companies "whose business models and market positions would be increasingly differentiated by 2015". In choosing these long-term investment ideas, they have looked for "best franchises" and not just undervaluation. In filtering these stocks, the focus was on sustainability of "competitive advantage, business model, pricing power, cost efficiency and growth."
From these 50 chosen stocks, we will discuss 7 long-term stock picks by Morgan Stanley in this article.
Schlumberger (SLB) has been given an overweight rating by Morgan Stanley due to an advanced technology portfolio and has a $1 billion investment in its Research and Development segment. The company has a leading market share in most of its products, some of the greatest field personnel and a great performance reputation, opines Morgan Stanley.Up until the year 2000, Schlumberger managed to quadruple its size and expand into the Eastern Hemisphere and the next 10 years are expected to witness a new wave of exploration. With high barriers-to-entry technologies, Schlumberger continues to gain market share while also providing an unmatched service quality. Currently, its shares are trading at $68.04 and are expected to go north of $98 by the end of 2012. Earnings per share are expected to grow at 32.6% over the next two years against an industry median of 27.6%, while sales growth of 19.2% is expected, against the industry median of 18.8%. It has a P/E ratio of 15 times. Jim Simons' Renaissance Technologies had $191 million in SLB at the end of September.
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