Shares of Morgan Stanley (MS) crafted a new 52-week high, touching $30.23 in the first hour of the trading session on Nov 12, 2013. The stock closed the session at $29.76, registering a solid year-to-date return of 51.7%. The trading volume for the session was 14.45 million shares, higher than the average of 13.09 million over the last 3 months.
Despite the strong price appreciation, this Zacks Rank #3 (Hold) stock has plenty of upside left, given its estimate revisions over the last 30 days and expected year-over-year earnings growth of 29.3% for 2013.
Growth Drivers
Impressive third-quarter 2013 results comprising positive earnings surprise of 19.1% and resumption of share repurchase, along with underlying strength in its business segments were the primary growth drivers for Morgan Stanley.
On Oct 18, Morgan Stanley reported third-quarter results. Keeping alive its earnings streak from the last four quarters, the company’s earnings from continuing operations of 50 cents per share outpaced the Zacks Consensus Estimate of 43 cents.
Results benefited from top-line growth and lower-than-expected expenses. However, a fall in client activity and market volumes for all products led to decline in Fixed Income & Commodities sales and trading results.
Estimate Revisions
Over the last 30 days, 2 out of 11 estimates for 2013 have been revised upward, lifting the Zacks Consensus Estimate by 2.0% to $2.06 per share. However, for 2014, 6 out of 18 estimates moved lower over the same time frame, causing the Zacks Consensus Estimate to fall by 2.7% to $2.55 per share.
Better performing banks include BankUnited, Inc. (BKU), KeyCorp. (KEY) and Comerica Incorporated (CMA), all of which carry a Zacks Rank #2 (Buy).
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