TLDR
- Morgan Stanley named Affirm undervalued, with a key investor forum on May 12 as a potential catalyst
- UnitedHealth was added as a top pick after beating Q1 2026 earnings and raising its full-year outlook
- Meta is Morgan Stanley’s preferred big tech name ahead of its Q1 2026 results on April 29
- CrowdStrike was named top software pick after passing $5 billion in ARR with accelerating growth
- Seagate is now preferred over Western Digital for margin expansion and AI storage exposure
Morgan Stanley has named five stocks as its top picks for 2026. Each comes from a different part of the market but shares the same profile: clear earnings potential, a near-term catalyst, and upside the firm believes the market has not fully priced in.
Affirm
Analyst James Faucette called Affirm undervalued. He argued that concerns about the company’s private credit exposure look overdone. The buy now, pay later model remains the core of the bull case.
A May 12 investor forum is flagged as a potential turning point, with room for management to lift medium-term targets. Affirm is also due to report third-quarter fiscal 2026 results on May 7.
UnitedHealth Group
Morgan Stanley moved UnitedHealth into top pick territory on April 16. The decision followed more favorable Medicare Advantage rates coming through for the company.
UnitedHealth Group Incorporated, UNH
UnitedHealth reported Q1 2026 adjusted earnings of $7.23 per share on $111.7 billion in revenue, both above expectations. The company raised its full-year guidance to more than $18.25 per share.
Meta Platforms
Morgan Stanley named Meta its preferred big tech stock heading into earnings season. The firm sees a stronger earnings growth path than peers, driven by AI improving advertising efficiency across its platforms.
Meta reports Q1 2026 results on April 29. Its 2025 full-year revenue rose 22%, and management said 2026 operating income should exceed 2025 levels despite heavy infrastructure spending.
CrowdStrike
Morgan Stanley upgraded CrowdStrike to Overweight in March and named it the top pick in software. The firm said it is one of the best-placed cybersecurity companies to keep gaining market share.
The Falcon Flex platform and endpoint security strength drove that view. CrowdStrike passed $5 billion in ending ARR, grew ARR 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 better gross margin expansion potential and stronger positioning in high-capacity drives.
The argument is that hard drives are an underappreciated beneficiary of AI data creation and cloud storage demand. Morgan Stanley views Seagate’s upcoming earnings as a key test of pricing power and supply tightness.
Seagate reports fiscal Q3 2026 results on April 28. That report is the most immediate data point on Morgan Stanley’s list and the earliest test of whether the firm’s thesis holds.
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