Pick: Morgan Stanley (MS)
Anna Dopkin ran two funds at T. Rowe Price before becoming co-director of North American equity research and lead manager of its institutional Structured Research Strategy, which manages $30 billion. All three funds have beaten their benchmarks during her tenure. Dopkin thinks Morgan Stanley is primed for a big rebound. "A lot is weighing on the stock right now," she says: The financial sector has been walloped, Europe is a drag, and Moody's has signaled a looming downgrade. But those are priced in. The stock is trading near 0.5 times the book value of the firm's assets (excluding intangibles like goodwill), well below its 10-year average of 1.7. "It's just really cheap on price/book," Dopkin says. "You could have a lot of accidents, and you're probably still going to make money on this stock in a better economy." She thinks the shares could jump (with periodic dips) from $13 to $18 to $20 in the next 18 months. "The brand still garners respect," Dopkin says, "and at the end of the day, there are still going to be investment banks."
--A.F.