Trade-Ideas: Morgan Stanley (MS) Is Today's Post-Market Leader Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
(
) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Morgan Stanley as such a stock due to the following factors:
- MS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $341.3 million.
- MS is up 2% today from today's close.
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More details on MS:
Morgan Stanley, a financial holding company, provides various financial products and services to corporations, governments, financial institutions, and individuals worldwide. The stock currently has a dividend yield of 1.1%. MS has a PE ratio of 22.2. Currently there are 6 analysts that rate Morgan Stanley a buy, no analysts rate it a sell, and 9 rate it a hold.
The average volume for Morgan Stanley has been 10.6 million shares per day over the past 30 days. Morgan Stanley has a market cap of $70.5 billion and is part of the financial sector and financial services industry. The stock has a beta of 2.15 and a short float of 1.1% with 1.61 days to cover. Shares are down 10.1% year-to-date as of the close of trading on Tuesday.
Analysis:
rates Morgan Stanley as a
. The company's strengths can be seen in multiple areas, such as its notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- MORGAN STANLEY has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MORGAN STANLEY increased its bottom line by earning $1.58 versus $1.38 in the prior year. This year, the market expects an improvement in earnings ($2.90 versus $1.58).
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 13.1%. Since the same quarter one year prior, revenues slightly dropped by 4.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Capital Markets industry and the overall market on the basis of return on equity, MORGAN STANLEY underperformed against that of the industry average and is significantly less than that of the S&P 500.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Capital Markets industry. The net income has significantly decreased by 2040.5% when compared to the same quarter one year ago, falling from $84.00 million to -$1,630.00 million.
- You can view the full Morgan Stanley Ratings Report.
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