Stocks that the market is most bullish or bearish on

Morgan Stanley has arrived at a list of stocks that the consensus is most bullish on, and another on which it is most bearish. The lists have been arrived at based on factors like sell-side opinion, institutional ownership, relative valuations, earnings expectations, long-term relative trailing performance and trading volumes of these stocks.

The list can be used as a means of identifying cases of mispricing, according to the report. It said that while sometimes the consensus is right, a more bullish stance could also mean that the stock is less likely to see huge outperformance in the future.

 

Higher ownership could stunt growth and richer valuations could signify limited upsides. On the other hand, if the earnings expectations are low, then that could lend support to the share price.

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Source: Morgan Stanley-India Equity Strategy report titled "What's the market doing with the Nifty Index stocks"