Key statistics

Is MS a good stock to buy in 2026?

Morgan Stanley (MS) presents a mixed bag for investors considering its stock in 2026. While its P/E ratio of 16.42x appears significantly cheaper than the Financial – Capital Markets sector average of 42.2x, indicating a potentially attractive entry point for MS valuation, the robust 53.8% analyst ‘Buy’ rating suggests a positive sentiment among professionals. However, a deeply negative DCF fair value of $34.6, representing an 81.8% discount to the current price, flags a significant valuation concern, prompting investors to consider if MS is a good stock given these conflicting signals. This analysis is for informational purposes only and does not constitute investment advice.

2026 MS price scenarios

Based on analyst consensus of $205.75 from 52 analysts. Not a prediction by Alert Invest.

About Morgan Stanley (MS)

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.

Led by CEO Edward N. Pick, Morgan Stanley is a globally renowned financial services firm with a significant presence across investment banking, wealth management, and investment management. The company, employing approximately 81,000 professionals, leverages its extensive global network and deep expertise to serve a diverse client base. Its distinctive strengths lie in its robust institutional securities business and its rapidly growing wealth management segment, which together contribute to its competitive positioning in the Financial – Capital Markets industry.

MS competitive moat and business analysis

Morgan Stanley operates in a highly competitive sector, but its established brand, global reach, and diversified business segments contribute to its competitive advantage. The firm’s net margin of 15.13% indicates solid operational efficiency, particularly within the Financial Services sector. However, the absence of reported ROE and ROIC figures (N/A) makes a direct comparison of capital efficiency challenging, requiring investors to delve deeper into its balance sheet and income statements to fully assess its profitability drivers.

The company’s revenue streams are primarily driven by its Institutional Securities, Wealth Management, and Investment Management segments. While specific percentage breakdowns for the fiscal year 2025 are not detailed here, these core divisions represent distinct areas of focus that allow MS to capture opportunities across various market conditions and client needs. Its geographic footprint, as indicated by the 2025 FY data, spans the Americas, Europe, the Middle East, Africa, and Asia, providing global diversification.

Analyzing the moat trend for MS stock, the company’s revenue growth of 11.5% year-over-year suggests a healthy expansion trajectory. This growth indicates Morgan Stanley’s ability to navigate market dynamics and expand its service offerings. Despite the lack of specific transcript quotes, the consistent revenue growth points to effective strategic execution and client acquisition in a demanding financial landscape, underpinning the resilience of the MS business model.

When evaluating MS against its peers, understanding the nuances of the Financial – Capital Markets sector is crucial. For a deeper dive into how Morgan Stanley stacks up against its competitors in terms of valuation, growth, and other key metrics, consider a side-by-side analysis. You can compare MS with APLD, BITF, and BTBT to gain more comprehensive insights into its relative strengths and weaknesses.

Morgan Stanley analyst rating

Based on 52 analysts. 53.8% rate MS Buy or Strong Buy.

A 53.8% ‘Buy’ rating among 52 analysts indicates a generally positive outlook for MS stock within the Financial – Capital Markets sector, though a substantial 46.2% ‘Hold’ suggests some caution. While this isn’t an overwhelming ‘Strong Buy’ consensus, it reflects a solid belief in Morgan Stanley’s potential to perform, especially considering its robust market presence.

Is MS undervalued or overvalued?

Assessing MS valuation reveals a compelling narrative. Morgan Stanley’s P/E ratio of 16.42x stands at a significant discount when compared to the Financial – Capital Markets sector average of 42.2x. This indicates that MS stock might be undervalued relative to its industry peers on an earnings basis. The P/B ratio of 2.68x and P/S ratio of 2.51x also suggest a reasonable, if not cheap, valuation when looking at assets and sales, respectively. Investors evaluating whether MS is a good stock often look for such discounts.

However, a critical aspect of MS valuation is its Discounted Cash Flow (DCF) fair value, which calculates at $34.6. This figure is strikingly low, representing an 81.8% discount to the current stock price, suggesting that based on future cash flow projections, the stock is heavily overvalued. This discrepancy between traditional valuation multiples (like P/E) and the DCF model highlights the complexity of determining the true intrinsic value of MS stock and warrants careful consideration by potential investors.

MS financial health & key metrics

For value investors, the financial health of Morgan Stanley (MS) presents a mixed picture. While the MS stock boasts a significantly lower P/E ratio of 16.42x compared to its sector average of 42.2x, suggesting it could be a ‘cheap’ entry, other metrics warrant closer inspection. Its net margin of 15.13% is strong, indicating efficient operations. However, the high debt-to-equity ratio of 4.26x and a negative Free Cash Flow (FCF) yield of -5.93% signal potential financial leverage concerns and challenges in generating excess cash. Furthermore, the Discounted Cash Flow (DCF) fair value of $34.6 implies that the stock is currently overvalued, despite its revenue growth of 11.5%.

Morgan Stanley earnings history & next report

Morgan Stanley reported EPS of $3.43, beating estimates by 13.58%. Next earnings: 2026-07-15 with EPS estimate of $2.71.

Looking ahead to Morgan Stanley’s next earnings report on 2026-07-15, investors will be keenly watching to see if the firm can again exceed expectations, with an EPS estimate of $2.71. Following its previous strong beat, where it reported an EPS of $3.43, surpassing estimates by 13.58%, continued performance in its core segments, particularly wealth management and institutional securities, will be key to maintaining positive investor sentiment. Commentary on market conditions, regulatory outlook, and strategic growth initiatives will also be crucial in understanding the future trajectory of MS stock.

MS daily short volume

Short volume data from FINRA CNMS Consolidated — shares sold short in the most recent US trading session. A high short ratio can signal bearish conviction or a potential short squeeze. Updated every trading day.

MS insider trading activity

Corporate insiders must report trades to the SEC within two business days.

Source: SEC Form 4 via EDGAR · Data: Financial Modeling Prep · Not investment advice

Recent MS analyst rating changes

Morgan Stanley stock news today

How does MS compare to its peers?

To truly understand the investment potential of MS stock, it’s essential to benchmark Morgan Stanley against its industry peers. While each company has unique characteristics, a comparative analysis provides valuable context for its valuation, growth prospects, and overall market position in the Financial Services sector.

FAQ — Morgan Stanley (MS) stock