MORGAN STANLEY: Here Are 40 Stocks That Should Grow No Matter What

REUTERS/ Lucy Nicholson

Morgan Stanley is out with a new report on "secular growth" stocks. That is, 40 stocks that are expected to grow independent of the fluctuations of the business cycle.

Tech stocks make up 40% of the list, playing into "Cloud, Social, Mobile, and Big Data themes." The next most common stock is retail at 18% featuring restaurants, online retailers, and performance apparel.

"Morgan Stanley analysts believe that the names selected for this report can grow strongly even if the global economy grows more slowly than our current, below-trend GDP forecasts," according to the report.

Note: The EPS growth is the projected compound annual growth rate (CAGR) from 2012-2015, the PE estimates are based on 2013 Morgan Stanley research expectations, and the PEG ratio refers to the price-earnings to growth ratio which is an indicator of the stock's valuation. Growth stocks with lower PEGs are generally considered cheaper.