Amazon (AMZN) - Get Report and Netflix (NFLX) - Get Report were among the companies Morgan Stanley listed in the firm's 30 for 2023 report, which focuses on "quality stocks for a long-term holding period."
"Morgan Stanley's economics team is more bullish than consensus on the economic recovery," the report said.
"Strong growth supports a bullish view on equities, but our U.S. equity strategy team thinks that strong growth is largely in the price of the major indexes."
Hence, the report continues, "they argue that stock picking will be essential for outperformance."
The New York investment firm said the main quality for inclusion on the list was how well a company would sustain its competitive advantage, business model, pricing power, cost efficiency and growth.
Morgan Stanley said it asked each of its U.S. analysts to identify the highest-quality companies in their sectors, "the ones likely to strengthen their sustainable competitive advantage."
"From more than 80 companies that our analysts singled out as high-quality, well-positioned leaders, we narrowed our focus to those that scored exceptionally well on these criteria," the report said.
The firm's guiding principle, the report said, "was to create a list of companies whose business models and market positions would be increasingly differentiated into 2023."
The report noted that Amazon's core retail business "continues to benefit from/drive the global e-commerce inflection."
"We were also encouraged that AMZN's logistics/fulfillment investments continue to position the company to grow its one-day business," analyst Brian Nowak said.
Netflix, analyst Benjamin Swinburne said, remains "the clear leader in streaming."
"We view Netflix's scaled position in global streaming and its vertically integrated content creation as significant advantages in driving strong growth as the industry pivots toward streaming video consumption," the analyst said.
Other companies featured in the report include Alphabet (GOOG) - Get Report, Nike (NKE) - Get Report, Costco (COST) - Get Report, Dollar General (DG) - Get Report, Visa (V) - Get Report and Warner Music Group (WMG) - Get Report.