Morgan Stanley adds Amazon to its list of favorite stocks. Here are the rest

Published Mon, Feb 10 202011:05 AM EST

Amazon 's growth profile makes it a great stock to own in the current low interest-rate environment, according to Morgan Stanley. The firm added Amazon to its "Fresh Money Buy List," as Amazon's heavy investments are manifesting sooner than expected. "In a world of low rates, AMZN's long duration growth profile and inflecting confidence on its achievability of higher profitability look compelling," Morgan Stanley analyst Brian Nowak said in a note to clients. Amazon stock has lagged the S & P 500 in the past 18 months as the e-commerce giant spent heavily on one-day shipping and its cloud platform, Amazon Web Services. Morgan Stanley said the market began to punish growth without profitability; however, Nowak said the concern is now fading and "the catch up may have just begun." Morgan Stanley has a $2,400 price target on Amazon, which is about a 15% upside for the stock. Among the other names on Morgan Stanley's buy list are media giant Disney , Humana , Philip Morris and T-Mobile . The firm said Disney's new streaming service Disney+ is raking in nearly $2 billion in revenue just in its short life since November 2019. "While admittedly early, this reinforces our view EPS can approximately double from FY20 to FY24," Morgan Stanley analyst Ben Swinburne said in a note. The firm said Humana's new partnership with private equity firm Welsh, Carson, Anderson & Stowe allows the health insurance company to scale its primary care business without deploying significant capital. "We expect to see partnerships with financial sponsors gain more traction industry wide," Morgan Stanley analyst Ricky Goldwasser said in a note. Morgan Stanley likes Philip Morris for its strong earnings growth outlook and market share of the electronic tobacco products. The firm said T-Mobile's strong financials are being overshadowed by the court challenge of its merger with Sprint. Morgan Stanley also likes consumer staples Procter & Gamble and Johnson & Johnson , and Microsoft . — with reporting from CNBC's Michael Bloom.

1.25 million square foot Amazon shipping center in Schertz, Texas.

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Amazon's growth profile makes it a great stock to own in the current low interest-rate environment, according to Morgan Stanley.

The firm added Amazon to its "Fresh Money Buy List," as Amazon's heavy investments are manifesting sooner than expected.

"In a world of low rates, AMZN's long duration growth profile and inflecting confidence on its achievability of higher profitability look compelling," Morgan Stanley analyst Brian Nowak said in a note to clients.