Morgan Stanley Identifies Five Stocks Poised for Growth in 2025

In a recent report, Morgan Stanley has highlighted five stocks that it believes will experience significant growth in the latter half of 2025. The investment bank's analysts have identified companies such as Chewy, Ulta Beauty, NuBank, Chart Industries, and Coupang as having substantial upside potential, positioning them as key investment opportunities for traders and investors alike.

The report, published on July 5, 2025, details the reasons behind the analysts' optimism regarding these stocks. Daniel Kutz, a senior analyst at Morgan Stanley, emphasized the prospects for Chart Industries, particularly following its merger agreement with Flowserve in early June 2025. "The deal accelerates key initiatives for Chart, and we view its organic growth prospects as compelling," Kutz stated. He further noted that the merger could enhance the company's valuation, especially in an uncertain economic climate where synergies from the merger may provide additional benefits. The stock has shown an impressive increase of nearly 18% over the past year, reflecting investor confidence.

Similarly, Ulta Beauty has garnered attention, with analyst Simeon Gutman asserting that the beauty retailer's current share prices present a noteworthy investment opportunity. Gutman indicated that industry trends are improving, suggesting that Ulta's conservative guidance could pave the way for upside potential. The stock has risen over 22% in the past year, and Gutman believes the company is well-positioned to sustain its market share gains despite potential challenges in the upcoming months.

Coupang, a leading e-commerce company in South Korea, has also been singled out for its robust performance. Analyst Seyon Park noted that Coupang's integrated fulfillment and delivery systems provide it with a competitive edge in the market, enabling it to capture significant market share. Even with a remarkable 40% increase in share price over three months, Park asserts that Coupang's valuation remains attractive, indicating further growth potential.

In terms of the pet supply sector, Chewy has emerged as a top pick for Morgan Stanley. The company's expansion into veterinary services, marked by the launch of its first vet clinic, presents what analysts view as an underpriced opportunity in a market estimated at $40 billion. The anticipated return on investment for these clinics could range from 2.5 to 5 times, making it an attractive proposition for investors.

Lastly, NuBank, the Brazilian fintech company, is seen as a strong contender in the payroll loan market. Analysts predict that NuBank will achieve a 10% market share by the end of 2026, significantly surpassing current sell-side expectations of 3-4%. This projection underscores the company's growth trajectory and the increasing investor interest in Brazil's financial sector.

The diverse portfolio of stocks identified by Morgan Stanley reflects the firm's confidence in various sectors, including technology, e-commerce, beauty, and financial services. The insights provided by the analysts highlight the potential for growth amid a changing economic landscape, suggesting that these companies may be well-positioned to capitalize on emerging opportunities.

As the year progresses, investors will be closely monitoring these stocks to assess their performance in light of the macroeconomic environment and industry trends. With ongoing volatility in the markets, the implications of these investment opportunities could be substantial for both individual and institutional investors alike. The selection of these five stocks illustrates a strategic approach to navigating the complexities of the current financial landscape, emphasizing the importance of thorough analysis and informed decision-making in investment strategies.