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Is Morgan Stanley (MS) Stock Outpacing Its Finance Peers This Year?

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Investors interested in Finance stocks should always be looking to find the best-performing companies in the group. Morgan Stanley (MS - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.

Morgan Stanley is a member of our Finance group, which includes 833 different companies and currently sits at #4 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader 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 4.9% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, MS has moved about 13.2% on a year-to-date basis. In comparison, Finance companies have returned an average of 0.4%. This means that Morgan Stanley is performing better than its sector in terms of year-to-date returns.

Another Finance stock, which has outperformed the sector so far this year, is Federal Agricultural Mortgage (AGM - Free Report) . The stock has returned 1.2% year-to-date.

For Federal Agricultural Mortgage, the consensus EPS estimate for the current year has increased 1.9% 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, a group that includes 20 individual stocks and currently sits at #96 in the Zacks Industry Rank. This group has lost an average of 2.2% so far this year, so MS is performing better in this area.

In contrast, Federal Agricultural Mortgage falls under the Financial - Mortgage & Related Services industry. Currently, this industry has 11 stocks and is ranked #205. Since the beginning of the year, the industry has moved -31.8%.

Morgan Stanley and Federal Agricultural Mortgage could continue their solid performance, so investors interested in Finance stocks should continue to pay close attention to these stocks.

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