According to a recent analysis from Morgan Stanley, five stocks are showing significant promise. Their report notes that companies like Chewy have persuasive business models and plenty of room in their inventory to maneuver. Other highlighted names include Ulta, Nubank, Chart Industries, and Coupang. Daniel Kutz, an analyst with Chart Industries at Morgan Stanley, has notably increased his investment in Gas Andrichification Company. This stock has been upgraded to a top recommendation following its merger with Flowserve earlier this month. Kutz emphasizes that while the merger is important for advancing GTLS initiatives, he finds the company’s organic growth potential compelling, possibly leading to increased valuations despite fluctuating trading conditions. He expresses optimism about the company’s growth targets, suggesting the stock may currently be undervalued.
He mentions that Chart Industries tends to perform well even during uncertain economic times and believes the synergy from the merger could enhance GTLS’s attractiveness. The stock itself has seen an 18% rise over the past year. Analyst Simeon Gutman points out that Ulta Beauty’s stock has become hard to overlook at its current price levels. Morgan Stanley’s recent memo indicates observations from peers in the beauty industry suggesting a positive trend. Gutman acknowledges that comparing Ulta’s performance for the second half of 2025 might be tricky but finds the current guidance to be conservative. He notes that Ulta faces minimal tariff risks and highlights that its stock increased over 22% last year.
In other news, Korean e-commerce company Coupang has recently gained favor among analysts, with Seion Park designating it as a top pick. Park attributes this to the company’s robust market share, particularly amid a weaker U.S. dollar, stressing that its fully integrated fulfillment and delivery system offers a significant competitive edge in Korea’s e-commerce landscape, which supports sustainable profits.
Chewy, for its part, is noted as a top choice as well, having launched its first veterinary clinic last year, tapping into the lucrative $400 billion market. The clinics are expected to become strong independent segments with promising economics, projecting a return on investment of about 2.5 to 5 times per clinic.
While there are concerns about whether the anticipated gains are worth the effort, Kutz addresses this skepticism. He believes that the overall economic and market analysis backs their views. Though investors are growing more interested in Nubank’s Brazilian salary loan offerings, there are questions about its rapid market capture potential. Nubank aims for a 10% market share by 2026, significantly higher than existing sell-side estimates of 3-4%.
Overall, Ulta appears well-positioned with low benchmarks and limited tariff risks. It seems likely that the company will maintain its profit trends, along with Coupang’s continual progress in the Korean market, which also benefits from USD conditions. The integration of its capabilities supports healthy profit margins and overall operational strength in its field.
