Today is Tuesday, July 14, 2020, and we’re looking at the recent performance of Morgan Stanley stock (NYSE: MS). What caused its price movements over the last month? And what do its prospects look like going forward? Let’s find out…
About Morgan Stanley
Morgan Stanley is a global investment bank whose history, through its legacy firms, can be traced back to 1924. The company has institutional securities, wealth management, and asset management segments. The company had $2.7 trillion of client assets as well as more than 60,000 employees at the end of 2019.It currently has a market capitalization of $78.91 billion.
Morgan Stanley’s Price Movements
Morgan Stanley shares rose 8.51% in the last month because of positive earnings expectations.
With these recent price movements in mind, let’s see how expensive Morgan Stanley is relative to its peers.
Morgan Stanley’s Valuation Today
The company’s price-to-earnings (P/E) ratio of 10.41 is 22.95% lower than its industry average of 13.51. That’s good.
A company’s P/E ratio shows its price as a multiple of its earnings per share (EPS). A relatively low P/E ratio is generally an indicator that a company is undervalued, while a relatively high P/E ratio is generally an indicator that a company is overvalued.
But valuation metrics like P/E never stay static for long. They’re especially affected by earnings reports…
Morgan Stanley’s Near-Future Prospects
Morgan Stanley’s next quarterly earnings report is expected on Thursday, July 16, 2020. It’s worth watching what that next quarterly earnings report will do to the company’s price and valuation.
The Takeaway
In summary, recent events have pushed Morgan Stanley shares up in the last month. They’re now undervalued relative to peer companies on a P/E basis – but that could change when the company releases earnings in July.
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