Based in New York, Morgan Stanley (MS) is renowned as a financial services holding company that provides various financial products and services to corporations, governments, financial institutions, and individuals worldwide. Valued at $156.65 billion by market cap, the company offers a wide range of investment banking, wealth management, and investment management services.

Companies worth $10 billion or more are generally described as “large-cap stocks,” and MS fits that description, signifying its substantial size, stability, and dominance in its industry. The company has a presence in 42 countries.

However, the leading financial services firm has fallen 6.6% from its 52-week high of $103.25, which it hit on May 21. Shares of MS are up 9.1% over the past three months, outperforming the broader US Financials iShares ETF’s (IYF) 1.5% gains over the same time frame.

Longer term, MS shares rose 10% over the past year, and in 2024, the stock is up 1.7%. By contrast, the IYF is up 9.6% on a YTD basis and 27.2% over the past 52 weeks.

To confirm the bullish price trend, MS has been trading above its 50-day moving average since mid-April and above its 200-day moving average since mid-February. 

On Apr. 16, MS stock closed up more than 2% after the company reported Q1 wealth management net revenue of $6.88 billion, higher than the consensus estimates of $6.69 billion.

MS’ recent outperformance can be attributed to its robust Q1 results, driven by higher dealmaking and capital market activity. The company’s revenue rose 4% year over year to $15.14 billion, and its EPS came in at $2.02, beating the consensus estimates of $1.66. Its investment banking revenue rose 16% year over year to $1.45 billion, and its wealth management revenue stood at $6.88 billion, up 4.9% from the year-ago quarter. The bank aims to capitalize on the expected recovery in the dealmaking and market positioning it for a solid 2024.

However, rival The Goldman Sachs Group, Inc. (GS) has outperformed both MS and the broader sector. GS stock has gained 32.5% in the past 52 weeks and 15.5% on a YTD basis.

With its recent outperformance compared to the sector, analysts remain optimistic about MS’s prospects. The stock has a consensus rating of “Moderate Buy” from the 23 analysts covering it, but the mean price target of $98.34 is only a 2% premium to current levels.

• 1 World-Class Stock That's All Hopped Up on the No-Alcohol Beer Boom
• How Is Philip Morris' Stock Performance Compared to Other Consumer Staples Stocks
• Lululemon vs. Stitch Fix: Which Pandemic Stock Looks Primed for a Comeback?
• DocuSign, Well Off Its Highs, Is a Cash Flow Juggernaut, and Deeply Undervalued