Morgan Stanley managing director Andrew Slimmon identifies growth potential in Japanese and European markets. He attributes the performance of Japanese stocks to companies raising their earnings estimates. By September 18, the Nikkei 225 index had risen approximately 25.4% in 2026, despite remaining nearly 12% below its June peak.
In Europe, Slimmon highlights the defense and banking sectors as key opportunities. The STOXX Europe 600 Banks index recorded a gain of about 18.87% for the year. Slimmon notes that stock prices are increasingly aligning with positive earnings revisions, marking a shift from previous years.
Morgan Stanley also updated its Vintage Values list for 2027, selecting 15 stocks after narrowing down over 50 recommendations. The 2026 edition of the list achieved a return of 32.12% between September 2025 and September 2026, outperforming the S&P 500 by 1,316 basis points.
The new list includes Amazon, McKesson, Visa, Alphabet, Apple, Coca-Cola, Dynatrace, Eli Lilly, Equinix, and Williams Companies. According to equity strategist Michelle Weaver, 60% of these selections fall into the top two quality tiers, and the portfolio maintains an anti-momentum focus.
