Morgan Stanley's Best Stocks for Long-Term Growth

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Staring down the barrel of the fiscal cliff and still dealing with the European debt crisis, investors want more stability in their stock picks. Here are Morgan Stanley's top long-term growth prospects.

Although stock picking is incredibly inaccurate and often wrong, that doesn’t stop analysts from predicting which stocks they think will do the best. Given the state of the world, Morgan Stanley has come up with its list of stocks that do well no matter how the economy is doing.

Europe is still fighting off a debt crisis, China’s economy is finally slowing down and the U.S. is facing a scary fiscal cliff at the end of 2012 (in addition to the end of the world?). Plus, investors seem to be scared of stocks again. And the truth is no one can really predict where the economies of the world are going — although they will try their hardest to come up with accurate indicators.

Business Insider has posted the 42 stocks on Morgan Stanley’s list that should help investors in this uncertain environment. These companies benefit from strong long-term growth prospects, so don’t expect to make a quick buck and get out like other stocks.

Here are the companies on the list with the highest earnings per share (EPS) growth.

Note: The EPS growth is the projected compound annual growth rate (CAGR) from 2011 to 2014; the P/E estimates are based on 2012 EPS expectations; and the PEG ratio refers to the price earnings to growth ratio, which is an indicator of the stock's valuation.

Stock information and estimates are from Morgan Stanley.

10. Lululemon Athletica

Ticker: LULU

EPS growth: 29.9%

P/E 2012: 40.0

PEG ratio: 1.3

9. American Tower

Ticker: AMT

EPS growth: 34.3%

P/E 2012: 50.1

PEG ratio: 1.5

8. Apple


Ticker: AAPL

EPS growth: 34.4%

P/E 2012: 15.4

PEG ratio: 0.4

7. Under Armour

Ticker: UA

EPS growth: 34.5%

P/E 2012: 45.1

PEG ratio: 1.3

6. Rackspace Hosting Inc.

Ticker: RAX

EPS growth: 35.3%

P/E 2012: 87.0

PEG ratio: 2.5

5. Michael Kors Holdings

Ticker: KORS

EPS growth: 40.0%

P/E 2012: 37.2

PEG ratio: 0.9

4. (tie) Fusion-io

Ticker: FIO

EPS growth: 43.8%

P/E 2012: 83.6

PEG ratio: 1.9

4. (tie) Amazon

Ticker: AMZN

EPS growth: 43.8%

P/E 2012: 327.9

PEG ratio: 7.5

2. Crown Castle

Ticker: CCI

EPS growth: 50.1%

P/E 2012: 67.6

PEG ratio: 1.3

1. Linkedin Corp

Ticker: LNKD

EPS growth: 89.9%

P/E 2012: 214.1

PEG ratio: 2.4

The information contained in this article should not be construed as investment advice or as a solicitation to buy or sell any stock.

Read more:

Morgan Stanley: These 42 Stocks are Winners No Matter What Happens in the Economy — Business Insider