close

2 Reasons to watch MS and 1 to stay cautious

ⓘ This article is third-party content and does not represent the views of this site. We make no guarantees regarding its accuracy or completeness.

MS Cover Image

Morgan Stanley currently trades at $187.26 per share and has shown little upside over the past six months, posting a small loss of 1.6%. The stock also fell short of the S&P 500’s 7.5% gain during that period.

Is now the time to buy MS? Or does the price properly account for its business quality and fundamentals? Find out in our full research report, it’s free.

Why does Morgan Stanley spark debate?

Founded in 1924 during the post-WWI economic boom by former JP Morgan partners, Morgan Stanley (NYSE: MS) is a global financial services firm that provides investment banking, wealth management, and investment management services to corporations, governments, institutions, and individuals.

Two things to like:

1. Skyrocketing revenue shows strong momentum

Long-term growth is the most important, but within financials, a stretched historical view may miss recent interest rate changes and market returns. Morgan Stanley’s annualized revenue growth of 17.1% over the last two years is above its five-year trend, suggesting its demand recently accelerated. Morgan Stanley year-on-year revenue growthNote: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

2. EPS surges higher over the last two years

While long-term earnings trends give us the big picture, we also track EPS over a shorter period because it can provide insight into an emerging theme or development for the business.

Morgan Stanley’s EPS grew at an astounding 36% compounded annual growth rate over the last two years, higher than its 17.1% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

Morgan Stanley trailing 12-month EPS (non-GAAP)

One reason to be careful:

Steady increase in TBVPS highlights solid asset growth

Tangible book value per share (TBVPS) is a crucial metric that measures the actual value of shareholders’ equity, stripping out goodwill and other intangible assets that may not be recoverable in a worst-case scenario.

Although Morgan Stanley’s TBVPS increased by a meager 5.6% annually over the last five years, the good news is that its growth has recently accelerated as TBVPS grew at a solid 10.2% annual clip over the past two years (from $43.76 to $53.18 per share).

Morgan Stanley quarterly tangible book value per share

Final judgment

Morgan Stanley has huge potential even though it has some open questions. With its shares underperforming the market lately, the stock trades at 13.7× forward P/E (or $187.26 per share). Is now the right time to buy? See for yourself in our full research report, it’s free.

Stocks we like even more than Morgan Stanley

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.

Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

Report this content

If you believe this article contains misleading, harmful, or spam content, please let us know.

Report this article

More News

View More

Recent Quotes

View More
Symbol Price Change (%)
AMZN  243.79
-10.81 (-4.25%)
AAPL  348.91
+5.08 (1.48%)
AMD  566.42
-12.02 (-2.08%)
BAC  51.14
+0.29 (0.57%)
GOOG  282.32
-39.57 (-12.29%)
META  624.52
+12.03 (1.96%)
MSFT  530.14
-0.87 (-0.16%)
NVDA  213.66
-1.72 (-0.80%)
ORCL  139.56
-4.98 (-3.45%)
TSLA  403.30
-0.92 (-0.23%)
Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the Privacy Policy and Terms Of Service.

Starting at /week.