This mega-investment bank beat earnings estimates by $0.05 in its latest quarter, posting earnings per share of $0.79. Shares have fallen in the recent market drop, creating a unique buying opportunity—growth and yield.
Morgan Stanley (MS)
The 15% drop in Morgan Stanley (MS) shares from their July high provides a buying opportunity.
In the second quarter, the financial services firm beat analysts’ EPS forecast by 7%. Revenue rose in all three business segments. Pre-tax profit margin rose to 28% from 22% a year-ago.
Morgan Stanley’s efforts to focus on wealth management should continue to benefit profitability.
Its shares interest growth-at-a-reasonable-price investors. They trade at 10.5X-forward EPS and yield 1.77% versus prospects for EPS to grow 21% in the next 12-months. (Next earnings: Mid October)
Sam Subramanian, PhD, AlphaProfit Sector Investors’ Newsletter, www.alphaprofit.com,
281-565-6963, September 2015