Morgan Stanley’s Top Stock Selections for 2026

TLDR

• Morgan Stanley selected Affirm as a top pick, noting the stock is undervalued ahead of its key investor forum on May 12
• UnitedHealth was elevated to top pick status following its strong Q1 2026 earnings and upgraded full-year guidance
• Meta Platforms stands as Morgan Stanley’s preferred big tech name ahead of its Q1 2026 results on April 29
• CrowdStrike was named the top software pick after surpassing $5 billion in ARR alongside accelerating growth
• Seagate Technology is now favored over Western Digital due to its margin expansion prospects and AI storage exposure

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(SeaPRwire) –   Morgan Stanley has named five stocks as its top 2026 picks. Each hails from a distinct market segment, but all share core traits: clear earnings potential, a specific near-term catalyst, and what the firm views as underappreciated upside.

Fintech and Healthcare

Affirm

Analyst James Faucette deemed Affirm undervalued, stating that concerns over private credit exposure look overblown. The company’s buy now, pay later model forms the core of the bullish investment case.

Affirm Holdings, Inc., AFRM

A May 12 investor forum could serve as a turning point, with management having room to raise medium-term targets. Affirm is also set to report its third-quarter fiscal 2026 results on May 7.

UnitedHealth Group

Morgan Stanley moved UnitedHealth into top pick territory on April 16, anticipating a streak of solid quarters following more favorable Medicare Advantage rates.

UnitedHealth Group Incorporated, UNH

The company reported Q1 2026 adjusted earnings of $7.23 per share on $111.7 billion in revenue, both figures beating analyst expectations. Full-year guidance was raised to more than $18.25 per share.

Tech, Software, and Storage

Meta Platforms

Morgan Stanley named Meta its top pick heading into big tech earnings season. The firm projects a stronger earnings growth path than its peers, with AI boosting advertising efficiency across its platforms.

Meta will report Q1 2026 results on April 29. Its most recent full-year report showed 22% revenue growth in 2025, and management noted that 2026 operating income will exceed 2025 levels despite heavy infrastructure investment.

CrowdStrike

Morgan Stanley upgraded CrowdStrike to Overweight in March and named it the top software pick. The firm argued it is among the best-positioned cybersecurity companies to continue gaining market share.

CrowdStrike’s Falcon Flex platform and endpoint security strength underpinned this view. The company surpassed $5 billion in trailing ARR, grew ARR by 24%, and posted its first full year of positive GAAP net income alongside record free cash flow.

Seagate Technology

Morgan Stanley now prefers Seagate over Western Digital in the hard disk drive space. The firm cited stronger gross margin expansion potential and better positioning in high-capacity drives.

The core argument is that hard drives are an underappreciated beneficiary of AI data creation and cloud storage demand. Seagate will report fiscal Q3 2026 results on April 28, which Morgan Stanley views as a key test of its thesis around pricing power and supply tightness.

Seagate’s upcoming earnings report is the most immediate data point on Morgan Stanley’s list, with results due in one week.