Why You Should Not Buy Morgan Stanley Shares Right Now
Morgan Stanley MS is a financial company that focuses on wealth management, capital markets, and investment banking. As a successful organization with over 60,000 employees globally, they manage a combined $2 trillion in assets for clients ranging from small families to major institutions.
As an investment bank, Morgan Stanley’s prime position is to manage their client’s money well. Therefore, as a company with little in the ways of news stories – and scandals – they seem to be doing their job.
But investing with a firm and investing in a firm are two different things. While we’d like to believe that companies responsible for managing money can handle their own balance sheets, that’s not always the case.
Qai’s deep-learning AI (artificial intelligence) is here to help. By crunching the numbers and providing real-time data for companies large and small, we can provide an accurate representation of a company’s financial metrics. Furthermore, by analyzing said metrics, we can offer a recommendation for the company’s stock, so you can feel confident in your decision to buy – or not.
Without further ado, let’s dive into Morgan Stanley’s performance as of August 2020.
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Morgan Stanley (MS)
Morgan Stanley ticked up 0.53% last week, ending Friday at $52.89 on the back of 8.7 million shares. This brings the stock up 3.91% for the year, with the company making fair headway over March’s initial plunge.
The month of August has been a good month for Morgan Stanley overall, despite a couple of bumps in the road. This is shown in the company’s price averages throughout the month: $51.71 over the past 10 days, and $51.02 over the past 22.
The company’s other financial metrics have also fared well throughout 2020 and into August. For instance, the company’s revenue has grown by 5.7% over the last fiscal year to $41.4 billion. This is roughly on pace with their growth over the past three years, up 15.4% from $37.9 billion in 2017.
Morgan Stanley’s operating income has seen similar increases: 7.7% in the last fiscal year and 16.6% in the last three. This has brought the company’s operations budget from $12.79 billion in 2017 to $13.84 billion as of the 2020 fiscal year.
EPS has increased significantly in the same time frame, outperforming expectations with a rise of 80%. This year’s gains have been much more modest in comparison, however, with EPS growing by 6.4% to $5.19. ROE has experienced growth as well, up from 8% in 2017 to 11.3% as of August.
Currently, the company is trading with a forward 12-month P/E of 11.41.
What’s the Verdict?
Morgan Stanley is a company with little in the way of news coverage – and a lot in the way of assets under management. However, that doesn’t mean the company is well-positioned to be your next portfolio pick.
In fact, our AI has graded Morgan Stanley’s performance and technical indicators as average at best. The company has earned a B rating in Technical, C in Momentum Volatility, and D’s in both Growth and Quality Value.
As a result, the best recommendation Q.ai can give for the month of August is a Neutral rating. Invest at your own risk.
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