) reached a new 52-week high, touching $34.57 on Aug 25. However,
the stock closed the session at $34.20, reflecting a solid return
of 30.9% in a year's time. The trading volume for the session was
Despite the strong price appreciation, this Zacks Rank #3 (Hold)
stock has plenty of upside left, given the positive estimate
revisions it witnessed over the past 30 days. Further, the
long-term expected earnings per share growth rate for this
investment brokerage firm now stands at 21.9%.
Strong second-quarter results, including an increased focus on
organic as well as inorganic growth initiatives, primarily drove
the stock price.
On Jul 17, Morgan Stanley came out with second-quarter 2014
adjusted earnings per share from continuing operations of 60 cents,
beating the Zacks Consensus Estimate by 9.1%. The reported figure
was also above 45 cents earned in the prior-year quarter.
Results were aided by an increase in net interest income and stable
fee income as well as marginally lower operating expenses,
partially offset by lower fixed-income, currency and commodities
trading income. Further, the quarter witnessed increased asset
position and improved net revenues across all segments.
Estimate Revisions Show Potency
Over the last 30 days, the Zacks Consensus Estimate for 2014 has
advanced 1.7% to $2.45 per share. For 2015, the estimate inched up
around 0.3% to $32.93 per share over the same time frame.
Some better-ranked stocks in this space include Arlington Asset
Investment Corp. (
), Moelis & Co. (
) and Piper Jaffray Companies (
). All these stocks sport a Zacks Rank #1 (Strong Buy).
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