Morgan Stanley (MS, $47.55) beats analyst's estimates (barely)
Despite a 9% drop on the quarterly earnings, Morgan Stanley, the sixth largest U.S. bank, managed to marginally beat analysts’ estimates.
Morgan Stanley's wealth management business salvaged earnings for the quarter, as it accounts for almost half of the bank’s revenue and helps maintain stability during weak periods for trading and investment banking -- the two segments that suffered during the first quarter due to subdued volatility. Besides the resilience of the wealth management sector, the bank also managed to cut non-interest expenses by 4%, which helped boost its bottom line.
MS's two important metrics reported estimate beating results - quarterly profit came at $2.34 billion, or $1.39 per share versus estimate of $1.17 per share; and revenue fell 7% to $10.29 billion versus an estimate of $9.93 billion.
Overall, wealth management proved to be the only sector that could protect margin against an unfavorable backdrop owing to slowing global economy, absence of interest hike this year, and trade disputes between U.S. and China. Despite this scenario, Morgan Stanley’s wealth management profit margin and its return on equity of 13.1% were comfortably within the targeted range. Perhaps this is also the reason why the company’s CEO has not lifted performance targets for wealth management because the business can produce returns of nearly 25% even in difficult times. Wealth management revenue rose slightly from a year ago, with profit margins holding steady at 27%.
In short, Morgan Stanley is in a better position even than its top rival Goldman Sachs Group (GS), which reported a 20% profit decline and lower revenue across nearly all its major businesses, sending its shares down more than 3%.
MS in downward trend: 10-day moving average crossed below 50-day moving average on August 20, 2026
The 10-day moving average for MS crossed bearishly below the 50-day moving average on August 20, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on August 19, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on MS as a result. In of 72 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for MS turned negative on August 20, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at .
MS moved below its 50-day moving average on August 19, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MS declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MS advanced for three days, in of 354 cases, the price rose further within the following month. The odds of a continued upward trend are .
MS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 295 cases where MS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 85, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. MS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.157) is normal, around the industry mean (4.401). P/E Ratio (17.302) is within average values for comparable stocks, (21.328). Projected Growth (PEG Ratio) (2.030) is also within normal values, averaging (1.691). Dividend Yield (0.019) settles around the average of (0.032) among similar stocks. P/S Ratio (4.634) is also within normal values, averaging (17.980).
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General Information
a provider of diversified financial services including brokerage, investment management and venture capital services
Industry InvestmentBanksBrokers
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