Global investment bank Morgan Stanley (NYSE:MS) has a “Perfect 10” Smart Score on TipRanks, which implies that the stock has the potential to beat the benchmark index. The Smart Score tool considers eight different factors, including analyst rating, technical analysis, and insider activity, among others, before assigning a score to the stock.
The company is expected to release its fourth-quarter earnings on January 17. The Street expects Morgan Stanley to post earnings of $1.28, compared with $2.08 in the same quarter last year. Shares of the company are up nearly 13% over the past three months.
Let’s check why MS stock scores a “Perfect 10” on TipRanks.
The rising demand for fixed-income securities due to the heightened volatility in the capital markets might continue to aid Morgan Stanley’s investment banking revenues. Further, decent loan demand, efforts to grow the asset management business, and expense-control initiatives are likely to support the company’s long-term growth.
Also, Morgan Stanley’s capital deployment activities are impressive. The company increased its quarterly common stock dividend by 10%, to $0.77 per share in July 2022. Also, its dividend yield of 3.4% remains above the financial sector’s average of 2.1%.
Should You Buy MS Stock?
Turning to Wall Street, analysts seem to be cautiously optimistic about MS, which has a Moderate Buy rating based on seven Buys, five Holds, and one Sell. The average MS stock forecast of $97.25 implies 11% downside potential.
Ending Thoughts
Morgan Stanley is a “Perfect 10” stock based on its solid fundamentals, diversified business model, and continued investments in high-growth areas.
It is worth highlighting that hedge funds have maintained a very positive outlook on MS stock. Our data shows that hedge funds bought about 2.6 million shares of the company in the last quarter. Bloggers are bullish on the stock as well.
