Morgan Stanley
Report published June 30, 2026
Morgan Stanley: CoTD: Sustained Cycle Momentum But Equities Need Revisions
Morgan Stanley · June 30, 2026
Morgan Stanley maintains an attractive view on US Industrials, driven by sustained cyclical momentum and secular US reshoring trends. However, with valuations at historic highs, future equity gains require positive earnings revisions for the second half of the year.
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Finvaulta summarizes Morgan Stanley's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.
Key Takeaways
- 1.US industrial activity shows sustained momentum, but current equity valuations reflect a high bar for future growth, necessitating positive forward revisions.
- 2.US Reshoring is a key driver for the short-cycle industrial upcycle, shifting production into the US market to mitigate tariff and supply chain risks.
- 3.The firm favors Industrial over Consumer exposure, specifically targeting companies involved in constructing and serving facilities.
Table of Contents
- CoTD: Sustained Cycle Momentum But Equities Need Revisions
- STOCK RATINGS
- Global Stock Ratings Distribution
- Analyst Stock Ratings
- Analyst Industry Views
Report data
US Industrials Relative SPX Valuation (NTM PE)
| Metric | Estimate | Context |
|---|---|---|
| US Multi-Industry Median Organic Growth (2H Forecast) | 5-6% | Median growth forecast for 2H compared to Q2 |
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Authors / Editors
Christopher Snyder, CFA · Equity AnalystBrandon Knutson · Equity AnalystToby Okwara · Equity AnalystChristine Yao · Research Associate