Morgan Stanley (MS) Likes (MSFT)(BAC)(AKS)(PEP), Among Laggards

Morgan Stanley (NYSE:MS) released a list of stock laggards today in a report, with parameters of trailing their respective sectors by at least 10 percent over the last six months.

Among the shares they recommend buying in the group are Delta Air Lines (NYSE:DAL), down 15.1%; Bank of America (NYSE:BAC), down 7.6%; AK Steel Holdings (NYSE:AKS), down 15%; PepsiCo (NYSE:PEP), down 10.9%; Murphy Oil (NYSE:MUR), down 15.7%; Microsoft (NASDAQ:MSFT), down 14.2%; and Talbots (NYSE:TLB), down 67.1%.

All of the stocks listed above have ratings of "Equal Weight" or "Overweight."

Morgan Stanley said a strategy of acquiring only laggards — rebalancing every month to buy the worst-performing quintile in the S&P 1500 on a trailing six-month basis — would have resulted in a 60% gain since January 2007, better than the S&P 500.




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