24/7 Wall St.

Looking at stock performance two years ahead implies that investors choose between two risk-reward strategies based on the current state of the market. For some time now, U.S. equity markets have behaved as if stocks are reasonably valued. In this so-called Goldilocks market, it is common to expect that volatility could return, bringing big swings in prices and volume to the market.

Analysts at Morgan Stanley do not believe that is how the market shapes up for the next couple of years. On Friday, the bank’s analysts released a research note coming down solidly on the side of sustainability and quality rather than volatility as the way to play the market over the next two years. The analysts also came up with a list of the 30 stocks “whose business models and market positions would be increasingly differentiated into 2021.” These 30 stocks, the analysts say, are the ones “most likely to strengthen their sustainable competitive advantage.”

In the list that follows, we present Morgan Stanley’s picks along with the firm’s current rating, share price as of Thursday’s close, and Morgan Stanley’s price target.

1. Accenture PLC (NYSE: ACN)
> Rating: Overweight
> Current share price: $164.82
> Current price target: $178

2. Alphabet Inc. (NASDAQ:  GOOGL)
> Rating: Overweight
> Current share price: $1,92.53
> Current price target: $1,500

3. Amazon.com Inc. (NASDAQ: AMZN)
> Rating: Overweight
> Current share price: $1,686.22
> Current price target: $2,200

4. Amphenol Corp. (NYSE: APH)
> Rating: Overweight
> Current share price: $94.32
> Current price target: $110

5. Anthem Inc. (NYSE: ANTM)
> Rating: Overweight
> Current share price: $304.65
> Current price target: $391

6. Arista Networks Inc. (NYSE: ANET)
> Rating: Overweight
> Current share price: $292.61
> Current price target: $300

7. Bank of America Corp. (NYSE: BAC)
> Rating: Overweight
> Current share price: $29.46
> Current price target: $34

8. Blackstone Group L.P. (NYSE: BX)
> Rating: Overweight
> Current share price: $34.43
> Current price target: $37

9. CDW Corp. (NASDAQ: CDW)
> Rating: Equal-weight
> Current share price: $96.62
> Current price target: $97

10. Costco Wholesale Corp. (NASDAQ: COST)
> Rating: Equal-weight
> Current share price: $233.84
> Current price target: $220

11. Dollar General Corp. (NYSE: DG)
> Rating: Overweight
> Current share price: $111.64
> Current price target: $119

12. Emerson Electric Co. (NYSE: EMR)
> Rating: Overweight
> Current share price: $67.48
> Current price target: $77

13. Estée Lauder Companies Inc. (NYSE: EL)
> Rating: Overweight
> Current share price: $159.99
> Current price target: $166

14. First Republic Bank (NYSE: FRC)
> Rating: Equal-weight
> Current share price: $102.92
> Current price target: $99

15. GoDaddy Inc. (NYSE: GDDY)
> Rating: Overweight
> Current share price: $75.17
> Current price target: $94

16. Home Depot Inc. (NYSE: HD)
> Rating: Overweight
> Current share price: $181.61
> Current price target: $200

17. IQVIA Holdings Inc. (NYSE: IQV)
> Rating: Overweight
> Current share price: $140.98
> Current price target: $156

18. McDonald’s Corp. (NYSE: MCD)
> Rating: Overweight
> Current share price: $182.74
> Current price target: $210

19. Microsoft Corp. (NASDAQ: MSFT)
> Rating: Overweight
> Current share price: $114.59
> Current price target: $140

20. Netflix Inc. (NASDAQ: NFLX)
> Rating: Overweight
> Current share price: $358.82
> Current price target: $450

21. NextEra Energy Inc. (NYSE: NEE)
> Rating: Overweight
> Current share price: $190.98
> Current price target: $191

22. Nike Inc. (NYSE: NKE)
> Rating: Overweight
> Current share price: $86.87
> Current price target: $103

23. Progressive Corp. (NYSE: PGR)
> Rating: Overweight
> Current share price: $72.86
> Current price target: $84

24. Raytheon Co. (NYSE: RTN)
> Rating: Overweight
> Current share price: $180.25
> Current price target: $215

25. Ross Stores Inc. (NASDAQ: ROST)
> Rating: Overweight
> Current share price: $88.99
> Current price target: $94

26. SBA Communications Corp. (NASDAQ: SBAC)
> Rating: Overweight
> Current share price: $189.44
> Current price target: $204

27. Verisk Analytics Inc. (NASDAQ: VRSK)
> Rating: Equal-weight
> Current share price: $128.13
> Current price target: $120

28. Visa Inc. (NYSE: V)
> Rating: Overweight
> Current share price: $154.20
> Current price target: $165

29. Walmart Inc. (NYSE: WMT)
> Rating: Overweight
> Current share price: $98.22
> Current price target: $113

30. Welltower Inc. (NYSE: WELL)
> Rating: Overweight
> Current share price: $77.88
> Current price target: $77