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Morgan Stanley Wealth Management updated its stock model portfolio, including changing weightings on some big names.
The team added Becton Dickinson (New York Stock Exchange:BDX) to its holdings “given its strong positioning in healthcare with idiosyncratic opportunities that drive recurring revenue and margin expansion amid strategic M&A,” according to senior investment strategist Daniel Skelly.
They closed Comcast (NASDAQ: CMCSA) “as the company lacks a clear catalyst, while industry competition and cyclical risk remain high.”
And they strengthened their position in UnitedHealth (UNH) “due to continued vertical integration and market share growth, which reinforced their leadership position in the health care and insurance industry.”
They also adjusted the stocks based on the “portfolio construction process, which seeks to better manage model risk.”
They increased the weights in Rockwell Automation (ROK), BlackRock (BLK) and Amazon (AMZN) and reduced the weights in JP Morgan Chase (JPM) and Qualcomm (QCOM).
The complete portfolio by sector is as follows:
(“Relative to benchmark weight reflects the Equity Model Portfolio Solutions (MPS) team’s assessment of position sizing, relative to the weight of the relevant security. A on up corresponds to an internal portfolio weight that is 200 bps or more above the corresponding weight of the security in the benchmark, I for In-Line corresponds to an internal portfolio weight that is within 199 bp above or below the corresponding weight of the security in the benchmark, B for Lower corresponds to an internal portfolio weighting that is 200bp or more below the corresponding weighting of the weight security in the benchmark”).
Communication services (XLC) – Weight S&P 500 8.2%
- Alphabet (GOOGL), Relative Benchmark Weight I, Quant Rating Strong Buy, SA Analyst Rating Buy
- T-Mobile US (TMUS), A, QR Strong Buy, AR Buy
- Verizon (VZ), I, Pending QR, AR Buy
Consumer discretionary (XLY) – 9.9%
- Amazon (AMZN), I, QR Hold, AR Buy
- Home Depot (HD), I, QR on hold, AR on hold
- Nike (NKE), I, QR retention, AR retention
- Tesla (TSLA), I, QR pending, AR Buy
Consumer Staples (XLP): 7.3%
- Costco Wholesale (COST), I, QR hold, AR hold
- Estee Lauder (EL), I, QR hold, AR hold
- Coca-Cola (KO), I, QR on hold, AR on hold
- Monster Beverage (MNST), I, QR Hold, AR Hold
- Procter & Gamble (PG), I, QR hold, AR hold
Energy (XLE) – 4.8%
- Exxon Mobil (XOM), I, QR pending, AR pending
Finance (XLF) – 12.8%
- BlackRock (BLK), A, QR Hold, AR Buy
- Berkshire Hathaway (BRK.B), I, Buy Strong QR, Buy AR
- JP Morgan (JPM), A, QR Hold, AR Buy
- Mastercard (MA), I, QR Hold, AR Buy
- Visa (V), I, QR Hold, AR Buy
Health (XLV) – 14.7%
- Amgen (AMGN), I, QR Hold, AR Buy
- Becton Dickinson (BDX), I, QR pending, AR Buy
- Cigna (CI), I, QR Hold, AR Strong Buy
- Eli Lilly (LLY), I, QR hold, AR hold
- Pfizer (PFE), I, QR Hold, AR Buy
- Thermo Fisher (TMO), I, QR retention, AR retention
- UnitedHealth (UNH), I, QR Wait, AR Shop
Industrial (XLI) – 8.4%
- Deere (DE), A, QR standby, AR standby
- Eaton (ETN), I, Buy QR, Buy AR
- Northrop Grumman (NOC), A, QR Hold, AR Buy
- Rockwell Automation (ROK), I, QR hold, AR hold
Information Technology (XLK): 25.7%
- Apple (AAPL), I, QR hold, AR hold
- Accenture (ACN), I, QR Hold, AR Buy
- Salesforce (CRM), A, strong buy QR, buy AR
- Microsoft (MSFT), I, QR Hold, AR Buy
- ServiceNow (NOW), I, QR Hold, AR Buy
- Qualcomm (QCOM), A, hold QR, buy AR
Real Estate (XLRE) – 2.5%
- Prologis (PLD), I, QR Hold, AR Buy
- SBA Communications (SBAC), I
Earnings (XLU) – 2.9%
- American Electric Power (AEP), A, Buy QR, Buy AR
Take a look at Raymond James’ 20 pair trades.
