TipRanks
7 min read
In This Article:
Recent U.S. economic data suggests that inflation is gradually easing toward the Federal Reserve’s 2% target, with the headline CPI at 2.3% and core inflation at 2.8%. Meanwhile, the labor market remains resilient, adding 177,000 jobs in April and holding the unemployment rate steady at 4.2%.
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However, despite these positive indicators, the Fed remains cautious. Officials have noted that while recent trends are promising, risks still linger — particularly the possibility that inflation could stall above target or that labor market conditions could weaken in the months ahead, especially under the weight of potential trade disruptions. As such, recession concerns haven’t been fully laid to rest.
Morgan Stanley’s Global Strategy team, however, has taken a deep look into the current state of the world’s economy, and they have come down on the side of the bulls. In their view, the global economy remains sound, at least for the near-term.
“Despite unprecedented policy uncertainty, the global economy is still in expansion mode, albeit with slowing growth. Off-ramps for de-escalation of trade tensions exist and we expect that tariffs will not end at the extreme levels in the aftermath of Liberation Day. Substantial monetary easing is ahead along with the benefits of deregulation… TINA – ‘there is no alternative’ – remains a theme for now. USD assets are – if not simply the best, nor better than all the rest – THE market which will attract bulk of flows,” the strategists wrote.
The stock analysts at Morgan Stanley are running with this, and pointing out the ‘Top Pick’ stocks for the rest of 2025. According to the TipRanks data, both are also rated as Buys by the analyst consensus. Let’s dig in and see what sets these picks apart in today’s ever-shifting market landscape.
Atlassian Corporation (TEAM)
The first Morgan Stanley pick we’ll look at is Atlassian, the international software company that has developed a set of collaboration tools designed for the online office. Atlassian’s software packages enable smooth and efficient market, project, and product management, purpose-built to enhance collaboration and creativity in the workplace. The company was founded in 2002, and today boasts more than 300,000 customers.
Atlassian’s first product was Jira, its flagship project management tool. The company expanded based on Jira’s success, and launched the collaboration platform Confluence in 2004. Today, Atlassian’s product line-up includes 19 software programs, focusing on everything from office teamwork and collaboration to coding and online security. The company’s software products are designed as cloud-native, and Atlassian arranges cloud hosting through AWS.
