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Based in New York, Morgan Stanley (MS) is renowned as a financial services holding company that provides various financial products and services to corporations, governments, financial institutions, and individuals worldwide. Valued at $161.3 billion by market cap, the company offers a wide range of investment banking, wealth management, and investment management services.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and MS fits that description, signifying its substantial size, stability, and dominance in its industry. Morgan Stanley's strong market position and diversified revenue streams are key to its success, and its global footprint enhances its ability to attract and serve a wide client base.
However, the leading financial services behemoth is currently trading 8.2% below its 52-week high of $109.11, which it hit on July 16. MS stock is up 3.7% over the past three months, underperforming the broader SPDR S&P Capital Markets ETF’s (KCE) 7.7% gains over the same time frame.
Over the longer term, MS rose 16.8% over the past year, and in 2024, the stock is up 7.4%. By contrast, the KCE is up 16.5% on a YTD basis and 31.4% over the past 52 weeks.
To confirm the bullish price trend, MS has been trading above its 20-day moving average since mid-August and above its 200-day moving average since mid-January.
Morgan Stanley released its Q2 earnings on Jul. 16, and the stock soared marginally on the reporting day. The company reported net revenues of $15.0 billion, up from $13.5 billion in the same quarter last year. Net income applicable to Morgan Stanley increased to $3.1 billion, or $1.82 per diluted share, compared to $2.2 billion, or $1.24 per diluted share, in the same period last year.
However, its rival, The Goldman Sachs Group, Inc. (GS), has outperformed both MS and the broader sector. GS stock has gained 49.9% in the past 52 weeks and 27.2% on a YTD basis.
With its recent outperformance compared to the capital markets, analysts remain reasonably optimistic about MS’ prospects. The stock has a consensus rating of “Moderate Buy” from the 22 analysts covering it, and the mean price target of $107.70 is a 7.5% premium from current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
