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Is Morgan Stanley (MS) Outperforming Other Finance Stocks This Year?

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For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Morgan Stanley (MS - Free Report) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

Morgan Stanley is a member of the Finance sector. This group includes 869 individual stocks and currently holds a Zacks Sector Rank of #2. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Morgan Stanley is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for MS' full-year earnings has moved 2.8% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, MS has returned 17.4% so far this year. In comparison, Finance companies have returned an average of 11.8%. This means that Morgan Stanley is outperforming the sector as a whole this year.

Aviva (AVVIY - Free Report) is another Finance stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 57.1%.

In Aviva's case, the consensus EPS estimate for the current year increased 0.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Morgan Stanley belongs to the Financial - Investment Bank industry, which includes 21 individual stocks and currently sits at #12 in the Zacks Industry Rank. On average, stocks in this group have gained 23.1% this year, meaning that MS is slightly underperforming its industry in terms of year-to-date returns.

On the other hand, Aviva belongs to the Insurance - Life Insurance industry. This 16-stock industry is currently ranked #101. The industry has moved -1.6% year to date.

Investors interested in the Finance sector may want to keep a close eye on Morgan Stanley and Aviva as they attempt to continue their solid performance.


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