Morgan Stanley (MS): a significant upside for the stock

3:12 pm ET, 18 Apr 2018

The Morgan Stanley (NYSE: MS) stock barely moved in today's trading.  Is it a good investment opportunity? 

Morgan Stanley exceeded the expectations with a quarterly income of $27 Billion and net income of $1.9 Billion. Its wealth management net revenues were $4.4 Billion vs. $4.1 Billion last year.

The company's fixed-income revenue increased 9% to $1.8 Billion. 

This has been its best quarterly performance in three years for Morgan Stanley.  The remarkable performance of the company has resulted because of notable client engagement across its global franchise and its sales and trading in an active environment.

Morgan Stanley witnessed a 16% rise in the revenue from advising on corporate mergers to $574 million and underwriting revenue increased by 2%.

Will the stock rise further? Per Finstead Research, the stock has an average price target of almost $60, an upside of about 13%.

The valuation of the company is lowest among its peers.


Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

JPMorgan Chase (JPM): What Does The Future Look Like?

6:45 pm ET, 05 Apr 2018

 JPMorgan Chase’s (NASDAQ: JPM) stock price barely increased in today’s trading

Jamie Dimon, the company's CEO, praised President Trump because of his tax cuts and deregulation while criticizing his trade and immigration policies beacause they will likely hurt growth in the United States.

According to Dimon, it is possible for the bank to grow and penetrate into new markets by investing excess capital stemming from the new federal tax cuts and constructive regulatory environment since the 2016 presidential elections.

According to Dimon, JPMorgan can earn a 17% return on the tangible equity that exceeds the target before the enactment of corporate tax cuts. It is also above the company’s 2017 performance by almost 4%.

CEO Dimon pointed out to Wall Street's low-profit estimates and declared that he would concentrate on buybacks to return capital to JPM's shareholders. This is indeed good news for the shareholders.

Dimon holds an opinion that buying back a big block of share would enhance the earnings per share by 2%-3% in the upcoming 5 years, with the tangible book value remaining virtually constant. Currently, the company has 1.6 times tangible book ratio which is below Dimon's threshold.

Per Finstead Research, JP Morgan has the average price target of $119. The stock price has an upside of about 9%.

JPMorgan's valuation is considered to be not overly conservative or aggressive. Based on the forward P/E ratio, JPMorgan is ahead of CMSGS, and  BAC, but behind WFC.  

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

Morgan Stanley (MS) Stock Guide

Updated at: 12:47 pm ET, 12 Jul 2020

Before we start: if you're looking for MS stock price, you can quickly find it out by visiting Finny and typing "MS quote". If you're looking for a quick scoop on MS stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "MS". You'll get all this info in one place. Or you can just type "MS news" to get the latest stock news.

Looking to buy or sell Morgan Stanley (MS)? Interested in getting the full scoop on MS, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this MS stock guide, we'll address key questions about MS, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are MS earnings?
2. When is MS earnings date?
3. What is MS dividend?
4. What is MS dividend yield?
5. What is MS stock forecast (i.e., prediction)?
6. MS buy or sell? What is MS Finny Score?
7. What are the reasons to buy MS? Why should I buy MS stock?
8. What are the reasons to sell MS? Why should I sell MS stock?
9. What are MS key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are MS earnings?

MS trailing 12-month earnings per share (EPS) is $4.81.

2. When is MS earnings date?

MS earnings date is July 16, 2020.

3. What is MS dividend?

MS forward dividend is $1.40.

4. What is MS dividend yield?

MS forward dividend yield is 3.78%.

Analyst Predictions

5. What is MS stock forecast (i.e., prediction)?

Based on MS analyst price targets, MS stock forecast is $47.02 (for a year from now). That means the average analyst price target for MS stock is $47.02. The prediction is based on 27 analyst estimates.

The low price target for MS is $34.40, while the high price target is $60.00.

MS analyst rating is Buy.

Analysis

6. MS buy or sell? What is MS Finny Score?

#{finnyScore:45}Our quantitative analysis shows 5 reasons to buy and 6 reasons to sell MS, resulting in Finny Score of 45.

7. What are the reasons to buy MS? Why should I buy MS stock?

Here are the reasons to buy MS stock:

  • Increases in asset prices and interest rates will materially improve revenue and operating margins in the company's asset-management and wealth-management segments.
  • Less reliance on trading revenue should allow the firm to weather regulatory changes better than its peers.
  • Approval to return more capital than the company's projected net income should be a positive catalyst for the stock.
  • MS forward dividend yield is 3.78%, higher than the industry (0.64%) and sector (1.09%) forward dividend yields. See MS forward dividend chart.
  • MS forward P/E ratio is 8.38, which is low compared to its industry peers’ P/E ratios. See MS forward P/E ratio chart.
  • MS Price/Book ratio is 0.77, which is low compared to its industry peers’ P/B ratios. See MS forward Price/Book ratio chart.
  • MS average analyst rating is Buy. See MS analyst rating chart.
  • MS cash to debt ratio is 1.90, higher than the average industry (0.18) and sector (0.18) cash to debt ratio. See MS cash to debt chart.

8. What are the reasons to sell MS? Why should I sell MS stock?

Let's look at the reasons to sell MS stock (i.e., the bear case):

  • The fixed-income and commodities business may require more of an overhaul than management anticipates.
  • Higher regulatory capital requirements will reduce returns on equity below pre-financial-crisis levels. In recent years, the Federal Reserve hasn't allowed many banks to draw down their excess capital.
  • The Department of Labor fiduciary rule will lead to many changes to how Morgan Stanley and the rest of the U.S. wealth-management industry operate.
  • MS quarterly revenue growth was -7.80%, lower than the industry and sector average revenue growth (1.44% and 2.03%, respectively). See MS revenue growth chart.
  • MS profitability is declining. The YoY profit margin change was -1.18 percentage points. See MS profitability chart.
  • MS PEG ratio (P/E adjusted for growth) is 220.80, which is high compared to its industry peers’ PEG ratios. See MS PEG chart.
  • MS average analyst price target ($47.02) is below its current price ($49.80). See MS price target chart.
  • MS short share of float is 4.63%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See MS short share of float chart.
  • MS short interest (days to cover the shorts) ratio is 3.34. The stock garners more short interest than the average industry, sector or S&P 500 stock. See MS short interest ratio chart.

Key Stats

9. What are MS key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for MS:

Metrics MS
Price $49.91
Average Price Target / Upside $47.02 / -5.80%
Average Analyst Rating Buy
Forward Dividend Yield 3.78%
Industry Capital Markets
Sector Financial Services
Number of Employees 60,348
Market Cap $59.58B
Forward P/E Ratio 8.38
Price/Book Ratio 1.47
Revenue (TTM) $40.62B
YoY Quarterly Revenue Growth -7.80%
Profit Margin 20.46%

If you liked this analysis, check out Stock Guides for other stocks.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

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