Morgan Stanley MS shares are trading higher by 2.6% to $110.87 Friday afternoon, following stronger-than-expected third-quarter earnings from key financial sector players.
Major banks like JPMorgan Chase, Wells Fargo and BlackRock delivered results that outpaced analyst forecasts, setting a positive tone for the broader market.
What To Know: The rally in financial stocks boosted the Financial Select Sector SPDR Fund (XLF), which climbed nearly 2% to reach record highs. Investor sentiment toward the sector improved dramatically as banks demonstrated resilience in core areas such as investment banking, trading revenues, and net interest income (NII).
With peers in the industry showcasing robust performance, hopes may be rising that Morgan Stanley could deliver similarly positive results in its upcoming earnings report scheduled for Wednesday, October 16.
What Else: Morgan Stanley, a leader in investment banking, wealth management, and institutional securities, is particularly well-positioned to benefit from favorable market conditions. The bank's revenue streams are diversified across equities and fixed income sales and trading, areas where competitors like JPMorgan reported standout performances.
JPMorgan's trading revenue exceeded expectations, with FICC (fixed income, currencies and commodities) sales and trading reaching $4.53 billion, suggesting a buoyant market for securities trading — a trend that Morgan Stanley could mirror given its strength in the segment.
Additionally, the strong performance in fee-based revenue, a key factor for institutions like Wells Fargo and Bank of New York Mellon, bodes well for Morgan Stanley's wealth management division.
This segment, which contributes nearly half of the bank’s overall revenue, could see higher inflows and fee generation, mirroring the sector-wide trend of rising client demand for wealth management services.
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Is MS A Good Stock To Buy?
An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Morgan Stanley‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.
These are known as capital allocation programs. Morgan Stanley does pay a dividend, which yields 3.86% per year as of the closing price on Oct. 11, 2024. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.
For example, if you're looking to earn an annualized return of 18.4%, you'll need to buy a share of abrdn Inc Credit Strat by the Oct. 24, 2024. Once done, you can expect to receive a nominal payout of $0.1 on Oct. 31, 2024.
Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Morgan Stanley will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.
According to data from Benzinga Pro, MS has a 52-week high of $111.48 and a 52-week low of $69.42.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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