Several top US banks reported positive earnings in Q3 this year, raising their prospects in the broader stock market. The financial giants’ strong presence in wealth management and banking activities is enabling significant growth across all sectors. Morgan Stanley (MS) stock is among the top gainers, as the investment bank generated better-than-expected earnings results last quarter.
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Morgan Stanley stock jumped to an all-time high of $121 after the Q3 earnings results were released last week. The price is still hovering around its ATH, as it closed Wednesday’s bell at $118. In the year-to-date alone, MS stock has surged nearly 25%, delivering decent returns to investors in the last 10 months.
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Morgan Stanley Stock: Will MS Continue Going Higher in the Charts?
While wealth management and investment firms thrive, market sentiments do not match performance. There are concerns about a recession hitting the US markets, and investors are wary of going all in. In addition, there is no guarantee that the Federal Reserve will initiate more interest rate cuts to cool down the economy. This puts Morgan Stanley stock under the spotlight as investor confidence remains skeptical.
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If the markets take a downturn, investment banks will be the first to suffer as they are at the forefront of the economy. Even stock market price prediction firm TipRanks has given a cautious call for Morgan Stanley stock. According to the price prediction, MS could reach a maximum of $135 in the next 12 months.
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That’s an uptick and return on investment (ROI) of approximately 15% from its current price of $118. Therefore, if the Morgan Stanley stock forecast is accurate, an investment of $1,000 could turn into $1,150.
However, the downside prediction indicates a dip to the $100 level if the markets do not hold on to the positive momentum. Taking an entry position in Morgan Stanley stock is risky, and it is best to avoid assets that can erode your money.