With only two days left until the Q2 2021 earnings release, Morgan Stanley (NYSE: MS) stock price has reached a record high.
On Thursday July 15th, Morgan Stanley will announce its second quarter 2021 financial results. The company has beaten the EPS estimates in the four previous quarters, and judging by the stock price’s evolution and analysts’ ratings, the market participants remain optimistic.
Morgan Stanley is one of the largest global financial services firms with a presence in over forty countries. It targets corporations, governments, institutional and individual investors and offers services in areas such as wealth management or investment banking.
A dividend-paying company, Morgan Stanley has managed to pay a quarterly dividend for twenty-three years in a row, constantly rewarding its shareholders. While the dividend yield of 2.39% is less than the sector median of 2.82%, Morgan Stanley investors’ benefited from the stock price’s performance.
Morgan Stanley Stock Price Remains Bullish, As Indicated by the Technical Picture
Both the technical and fundamental pictures bode well for further advances in the stock price. On the one hand, the technical perspective remains constructive despite the fact that the stock price trades at record highs.
Morgan Stanley stock price outperformed during the pandemic, reacting strongly from dynamic support in the $30 area. The breakout above $50 was decisive, as in the next several months, the price climbed to a new record high.
On the other hand, the fundamental picture looks bullish as well. As the Fed prepares to taper its asset purchases, thus tightening the financial conditions, the companies active in the financial services sector stand to benefit.
Tightening conditions in the United States will likely trigger similar reactions from other central banks in the world. Therefore, a company like Morgan Stanley with a global presence will further benefit.
What Are the Estimates for Q2 2021?
The market expects revenues close to $14 billion in the last quarter. Also, the gross profit margin of 89.51% remains above the sector median of 61.26%, indicating increased chances to beat earnings expectations.
Most analysts hold a buy rating for Morgan Stanley stock price, RBC Capital Markets being the last one that maintained its rating. All in all, Morgan Stanley’s investors have all the reasons to remain optimistic and to expect strong financial performance in the future.