The average U.S. stock is quietly getting crushed. Morgan Stanley says these ones are worth buying now.

The headline performance of major U.S. indexes has masked a less flattering reality beneath the surface: the average stock has been under pressure, even as a narrow group of large-cap names has carried the market. Morgan Stanley's observation points to a broadening divergence, with sectors such as industrials falling out of favor as investors concentrate exposure in a smaller set of winners.

For market participants, the significance lies less in any single call and more in what the dispersion reveals. When sentiment turns against an entire segment of the market, valuations in that segment can compress independently of underlying fundamentals. That gap between price and business performance is precisely where some strategists see opportunity.

What to watch: whether the weakness in lagging sectors reflects deteriorating earnings or simply a rotation of attention. If fundamentals hold steady while prices drift lower, the case for selective interest strengthens. If earnings estimates begin to fall in tandem, the picture changes materially.