Morgan Stanley handpicks 10 stocks to buy now for the richest profits as travel and outdoor activities transform in the post-pandemic world

COVID-19 handing out masks NYC
Noam Galai / Contributor/Getty Images

This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now.

  • A large team of Morgan Stanley analysts identified companies that have the strongest tailwinds due to behavioral changes spurred by the coronavirus pandemic. 
  • Their picks in travel reflect accelerating trends that include live streaming, food delivery, and online shopping.
  • Click here to sign up for our weekly newsletter Investing Insider.
  • Click here for more BI Prime stories.

The coronavirus pandemic has made lasting changes to virtually every aspect of daily living. 

A large team of analysts at Morgan Stanley studied some of the biggest transformations taking place within industries to deduce how businesses are adapting. 

Due to social distancing, the travel and tourism industries have been among the epicenters of the crisis. But the forced changes to consumer behavior have also created opportunities for companies that are benefiting from new habits. 

Morgan Stanley analysts identified four major themes that have emerged as a result of changes to travel and outdoor experiences. Within these themes, their single-stock analysts then identified ten companies that are purported to have the greatest tailwinds in a post-pandemic world. 

The four opportunistic themes are:  

  1. Increased streaming demand and an aversion to live events: Shelter-in-place mandates are accelerating the cord-cutting trend and forcing major events to be held virtually.
  2. A shift to off-premise dining through delivery and pickup: Fast-food restaurants with preexisting drive-thru facilities are likely to adapt faster than their full-service counterparts. 
  3. Banks with low exposure to at-risk loans: Financial institutions face credit losses if establishments like hotels and malls go bust.  
  4. Retail-store traffic reductions and changing apparel category preferences: Brands with largely wholesale business models benefit from the growth of ecommerce. 

All the companies featured below are rated "overweight" by Morgan Stanley analysts. 

1. Amazon

Screen Shot 2020 06 22 at 2.16.19 PM
Markets Insider

Ticker: AMZN

Investing themes: Live events aversion, increased streaming demand

Year-to-date performance: 46%

Source: Morgan Stanley

2. Netflix

Screen Shot 2020 06 22 at 2.19.45 PM
Markets Insider

Ticker: NFLX

Investing themes: Live events aversion, increased streaming demand

Year-to-date performance: 44%

Source: Morgan Stanley

3. Spotify

Screen Shot 2020 06 22 at 2.20.42 PM
Markets Insider

Ticker: SPOT

Investing themes: Live events aversion, increased streaming demand

Year-to-date performance: 56%

Source: Morgan Stanley

4. Walt Disney

Screen Shot 2020 06 22 at 2.22.39 PM
Markets Insider

Ticker: DIS

Investing themes: Live events aversion, increased streaming demand

Year-to-date performance: -20%

Source: Morgan Stanley

5. McDonald's

Screen Shot 2020 06 22 at 2.23.41 PM
Markets Insider

Ticker: MCD

Investing themes: Restaurants — a shift to off-premise

Year-to-date performance: -5%

Source: Morgan Stanley

6. Restaurant Brands International

Screen Shot 2020 06 22 at 2.24.54 PM
Markets Insider

Ticker: QSR

Investing themes: Restaurants — a shift to off-premise

Year-to-date performance: -14%

Source: Morgan Stanley

7. Yum Brands

Screen Shot 2020 06 22 at 2.26.14 PM
Markets Insider

Ticker: YUM

Investing themes: Restaurants — a shift to off-premise

Year-to-date performance: -13%

Source: Morgan Stanley

8. Dominos Pizza

Screen Shot 2020 06 22 at 2.28.50 PM
Markets Insider

Ticker: DPZ

Investing themes: Restaurants — a shift to off-premise

Year-to-date performance: 31%

Source: Morgan Stanley

9. SVB Financial Group

Screen Shot 2020 06 22 at 2.29.26 PM
Markets Insider

Ticker: SIVB

Investing themes: Banks' exposure to social distancing

Year-to-date performance: -12%

Source: Morgan Stanley

10. Nike

Screen Shot 2020 06 22 at 2.31.16 PM
Markets Insider

Ticker: NKE

Investing themes: Store traffic reductions and changing apparel category preferences

Year-to-date performance: -2%

Source: Morgan Stanley

Loading Something is loading.

Do you have a personal experience with the coronavirus you'd like to share? Or a tip on how your town or community is handling the pandemic? Please email covidtips@shgmylb.com and tell us your story.

Get the latest coronavirus business & economic impact analysis from Business Insider Intelligence on how COVID-19 is affecting industries.

SEE ALSO: Renowned strategist Tom Lee nailed the market's 40% surge from its worst-ever crash. Here are 17 clobbered stocks he recommends for superior returns as the recovery gains steam.