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Morgan Stanley (MS) Hit a 52 Week High, Can the Run Continue?
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Have you been paying attention to shares of Morgan Stanley (MS - Free Report) ? Shares have been on the move with the stock up 3.3% over the past month. The stock hit a new 52-week high of $166.77 in the previous session. Morgan Stanley has gained 29.4% since the start of the year compared to the 13.4% move for the Zacks Finance sector and the 28.9% return for the Zacks Financial - Investment Bank industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 15, 2025, Morgan Stanley reported EPS of $2.8 versus consensus estimate of $2.08 while it beat the consensus revenue estimate by 10.8%.
For the current fiscal year, Morgan Stanley is expected to post earnings of $8.86 per share on $67.19 in revenues. This represents a 11.45% change in EPS on a 8.8% change in revenues. For the next fiscal year, the company is expected to earn $9.71 per share on $70.18 in revenues. This represents a year-over-year change of 9.57% and 4.45%, respectively.
Valuation Metrics
Morgan Stanley may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Morgan Stanley has a Value Score of C. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 18.4X current fiscal year EPS estimates, which is a premium to the peer industry average of 16.2X. On a trailing cash flow basis, the stock currently trades at 14.1X versus its peer group's average of 14.1X. Additionally, the stock has a PEG ratio of 1.9. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Morgan Stanley currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Morgan Stanley passes the test. Thus, it seems as though Morgan Stanley shares could still be poised for more gains ahead.
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Morgan Stanley (MS) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of Morgan Stanley (MS - Free Report) ? Shares have been on the move with the stock up 3.3% over the past month. The stock hit a new 52-week high of $166.77 in the previous session. Morgan Stanley has gained 29.4% since the start of the year compared to the 13.4% move for the Zacks Finance sector and the 28.9% return for the Zacks Financial - Investment Bank industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 15, 2025, Morgan Stanley reported EPS of $2.8 versus consensus estimate of $2.08 while it beat the consensus revenue estimate by 10.8%.
For the current fiscal year, Morgan Stanley is expected to post earnings of $8.86 per share on $67.19 in revenues. This represents a 11.45% change in EPS on a 8.8% change in revenues. For the next fiscal year, the company is expected to earn $9.71 per share on $70.18 in revenues. This represents a year-over-year change of 9.57% and 4.45%, respectively.
Valuation Metrics
Morgan Stanley may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Morgan Stanley has a Value Score of C. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 18.4X current fiscal year EPS estimates, which is a premium to the peer industry average of 16.2X. On a trailing cash flow basis, the stock currently trades at 14.1X versus its peer group's average of 14.1X. Additionally, the stock has a PEG ratio of 1.9. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Morgan Stanley currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Morgan Stanley passes the test. Thus, it seems as though Morgan Stanley shares could still be poised for more gains ahead.