Morgan Stanley says these top picks have more upside ahead in September

Morgan Stanley says these top picks have more upside ahead in September

Title: Morgan Stanley Identifies Stocks with Upside Potential for September

Morgan Stanley has recently named several top stock picks with significant upside potential heading into September. The Wall Street investment bank has highlighted several companies that analysts believe will perform well in the coming months. Here are the key stocks that Morgan Stanley is overweight on:

1. Chewy (CHWY): The online pet retailer is firing on all cylinders, according to Morgan Stanley. Analyst Nathan Feather is bullish on the company, citing a strong 2Q earnings set-up and improving pet macro trends. The stock is up 23% this year and is seen as a top pick with improving market share gains and a compelling margin inflection.

2. Nu Holdings (NU): Shares of the Brazilian digital banking company have plenty of room to run, according to analyst Jorge Kuri. Kuri noted that Nu Holdings delivered a strong quarter, outperforming consensus expectations. The stock is up 42% this year and is seen as undervalued with the potential to outperform in the months ahead.

3. Perimeter Solutions (PRM): The maker of firefighting foam is a new top pick at Morgan Stanley. Analyst Daniel Kutz highlighted the company's robust earnings growth and defensive nature in an uncertain macroeconomic environment. The stock is up 75% this year and is seen as attractive due to potential M&A activity and increased wildfire activity.

4. Cummins (CMI): Analysts at Morgan Stanley have a positive outlook on Cummins, citing the company's ability to outperform despite a market-priced demand downturn in heavy-duty trucks. The company's operational self-help and investments in Power Systems bolster their conviction.

5. Cadence Design Systems (CDNS): Morgan Stanley sees strong structural growth for Cadence Design Systems, driven by its leading position in analog and mixed-signal design, deep customer relationships, and AI-driven electronic design automation tools.

These stocks are seen as attractive due to their growth potential, strong fundamentals, and favorable market conditions. Investors should monitor these picks as they enter September.

References:
[1] https://finance.yahoo.com/news/fed-announces-capital-levels-large-200551678.html
[2] https://www.cnbc.com/2025/08/30/morgan-stanley-names-stocks-with-more-upside-in-september.html
[3] https://www.reuters.com/business/morgan-stanley-joins-global-peers-with-september-fed-rate-cut-outlook-powell-2025-08-26/
[4] https://www.ainvest.com/news/morgan-stanley-capital-buffer-request-balancing-profitability-systemic-risk-bank-sector-2508/