Morgan Stanley Stock: Is MS Outperforming the Financial Sector?
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Valued at a market cap of $240.2 billion, Morgan Stanley (MS) is a financial holding company based in New York. It offers a range of financial products and services, including investment banking, securities trading, wealth management, and investment management services to corporations, governments, financial institutions, and individuals.
Companies valued at $200 billion or more are typically classified as “mega-cap stocks,” and MS fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the capital markets industry. The company's risk management discipline, strong brand reputation, and diversified revenue streams give it resilience across market cycles, making it one of the most trusted names in global finance.
This investment banking giant touched its 52-week high of $150.75 in the last trading session. MS has surged 17.4% over the past three months, outperforming the Financial Select Sector SPDR Fund’s (XLF) 6.2% rise during the same time frame.
In the longer term, MS has soared 47.2% over the past 52 weeks, considerably outpacing XLF's 20.2% uptick over the same time period. Moreover, on a YTD basis, shares of MS are up 19.7%, compared to XLF’s 11.7% rise.
To confirm its bullish trend, MS has been trading above its 200-day and 50-day moving averages since early May.
On Jul. 16, Morgan Stanley reported its Q2 earnings results. The company’s revenues came in at $16.8 billion, up 11.8% from the year-ago quarter and 5.5% above the consensus estimates. Moreover, on the earnings front, its net income per share of $2.13 increased 17% year-over-year, handily exceeding analyst estimates by 10.4%. Yet, its shares plunged 1.3% after the earnings release, highlighting a cautious investor sentiment despite the solid performance.
MS has lagged behind its rival, The Goldman Sachs Group, Inc. (GS), which gained 48.1% over the past 52 weeks and 30.2% on a YTD basis.
Considering MS’ recent outperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 25 analysts covering it. While the company is trading above its mean price target of $145.26, its Street-high price target of $160 suggests a 6.3% premium to its current price levels.
On the date of publication, Neharika Jain 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.
