Jim Cramer on Morgan Stanley (MS): ‘I Say Hold On For The Ride’

Summary

• Morgan Stanley (MS) has shown strong technical indicators, including a 100% technical buy signal, 45.39% gain in the last year, and a Trend Seeker buy signal.
• The company operates through Institutional Securities, Wealth Management, and Investment Management segments, offering a wide range of financial services globally.
• Analysts are generally positive with 7 strong buy ratings and price targets ranging from $74 to $126, reflecting confidence in future growth.
• Fundamental factors include a market cap of $182 billion, a P/E ratio of 17.40, and expected revenue and earnings growth, making it a solid investment.

The Chart of the Day belongs to the financial services firm Morgan Stanley (MS) . I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 9/23 the stock gained 10.19%.

Morgan Stanley, a financial holding company, provides various financial products and services to corporations, governments, financial institutions, and individuals in the Americas, Europe, the Middle East, Africa, and Asia. It operates through Institutional Securities, Wealth Management, and Investment Management segments. The Institutional Securities segment offers capital raising and financial advisory services, including services related to the underwriting of debt, equity, and other securities, as well as advice on mergers and acquisitions, restructurings, real estate, and project finance. This segment also provides equity and fixed income products comprising sales, financing, prime brokerage, and market-making services; foreign exchange and commodities; corporate and commercial real estate loans, commercial mortgage and secured lending facilities, and financing for sales and trading customers, and asset-backed and mortgage lending; and wealth management services, investment, and research services. The Wealth Management segment offers financial advisor-led brokerage, custody, administrative, and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; annuity and insurance products; securities-based lending, residential real estate loans, and other lending products; banking; and retirement plan services to individual investors and small to medium-sized businesses and institutions. The Investment Management segment provides equity, fixed income, alternatives and solutions, and liquidity and overlay services to benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors, corporations, and individuals through institutional and intermediary channels. The company was founded in 1924 and is headquartered in New York, New York. 

Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.

Barchart Technical Indicators:

• 100% technical buy signals
• 53.65+ Weighted Alpha
• 45.39% gain in the last year
• Trend Seeker buy signal
• 1.36 - 60 month Beta
• Above its 20, 50 and 100 day moving averages
• 17 new highs and up 15.11% in the last month
• Relative Strength Index 77.97%
• Technical support level at $111.07
• Recently traded at $112.75 with 50 day moving average of $101.61

Fundamental Factors:

• Market Cap $182 billion
• P/E 17.40
• Dividend yield 3.09%
• Revenue expected to grow 8.60% this year and another 4.80% next year
• Earnings are estimated to increase 34.20% this year, increase an additional 9.90% next year and continue to increase at a compounded annual rate of 15.54% for the next 5 years

Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:

• Wall Street analyst gave 7 strong buy, 1 hold and 1 sell opinion on the stock
• Analysts' price targets are between $74 and $121
• Value Line rates the stock its average rating of 3 with a price target of $126 and comments:"The investment bank should progress nicely in the near term. The stronger market backdrop, combined with management’s efforts, ought to lift results in the coming quarters."
• CFRAs MarketScope rates the stock a 4 star buy with a price target of $124 and comments:"We’re impressed with the investor earnings call by Ted Pick, the new CEO. He sees strength in the U.S. economy, and we are beginning to see growth in Europe and Asia. "
• MorningStar give the stock its below average rating of 2 with a fair Vlue of $97 or 15% over valued and comments:" Morgan Stanley has built a more stable business model, and its shift to wealth management from investment banking will continue to be a main part of the company’s story over the long term."
• Jim Cramer is quoted as saying: "I Say Hold On For The Ride"
• 117,790 investors monitor the stock on Seeking Alpha

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.

On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.