Like a puppy chasing its tail, some new investors often chase ‘the next big thing’, even if that means buying ‘story stocks’ without revenue, let alone profit. Unfortunately, high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson.
NYSE:MS), which has not only revenues, but also profits. Now, I’m not saying that the stock is necessarily undervalued today; but I can’t shake an appreciation for the profitability of the business itself. While a well funded company may sustain losses for years, unless its owners have an endless appetite for subsidizing the customer, it will need to generate a profit eventually, or else breathe its last breath.” data-reactid=”29″>In contrast to all that, I prefer to spend time on companies like Morgan Stanley (NYSE:MS), which has not only revenues, but also profits. Now, I’m not saying that the stock is necessarily undervalued today; but I can’t shake an appreciation for the profitability of the business itself. While a well funded company may sustain losses for years, unless its owners have an endless appetite for subsidizing the customer, it will need to generate a profit eventually, or else breathe its last breath.
View our latest analysis for Morgan Stanley ” data-reactid=”30″> View our latest analysis for Morgan Stanley
How Fast Is Morgan Stanley Growing?
If a company can keep growing earnings per share (EPS) long enough, its share price will eventually follow. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. Morgan Stanley managed to grow EPS by 16% per year, over three years. That’s a pretty good rate, if the company can sustain it.
The chart below shows how the company’s bottom and top lines have progressed over time. To see the actual numbers, click on the chart.
check this interactive graph of professional analyst EPS forecasts for Morgan Stanley.” data-reactid=”51″>Of course the knack is to find stocks that have their best days in the future, not in the past. You could base your opinion on past performance, of course, but you may also want to check this interactive graph of professional analyst EPS forecasts for Morgan Stanley.
Are Morgan Stanley Insiders Aligned With All Shareholders?
Since Morgan Stanley has a market capitalization of US$83b, we wouldn’t expect insiders to hold a large percentage of shares. But we are reassured by the fact they have invested in the company. Notably, they have an enormous stake in the company, worth US$229m. I would find that kind of skin in the game quite encouraging, if I owned shares, since it would ensure that the leaders of the company would also experience my success, or failure, with the stock.
Is Morgan Stanley Worth Keeping An Eye On?
2 warning signs for Morgan Stanley you should be aware of, and 1 of them makes us a bit uncomfortable.” data-reactid=”55″>As I already mentioned, Morgan Stanley is a growing business, which is what I like to see. If that’s not enough on its own, there is also the rather notable levels of insider ownership. That combination appeals to me, for one. So yes, I do think the stock is worth keeping an eye on. You should always think about risks though. Case in point, we’ve spotted 2 warning signs for Morgan Stanley you should be aware of, and 1 of them makes us a bit uncomfortable.
list of growing companies that insiders are buying, could be exactly what you’re looking for.” data-reactid=”56″>Although Morgan Stanley certainly looks good to me, I would like it more if insiders were buying up shares. If you like to see insider buying, too, then this free list of growing companies that insiders are buying, could be exactly what you’re looking for.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”62″>This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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