Based on Morgan Stanley's (NYSE: MS) updated earnings in September 2018, analysts' outlook appears to be consistent with historical trends, with an expected growth rate of 16% over the next year, compared to average earnings growth over the past five years of 17 % per year. By 2020, Morgan Stanley's net income can be expected to reach $ 6.5 billion, up $ 5.6 billion from the previous twelve months. Below is a brief commentary on the long-term market outlook for Morgan Stanley. For those interested in more than one business analysis, you can search here for its fundamentals. Discover our latest analyzes for Morgan Stanley

What will be Morgan Stanley's performance in the near future?

The long-term expectations of the 24 MS analysts are positive sentiment. As forecasts become more difficult in the future, broker analysts generally expect a duration of approximately three years. To understand the overall trajectory of MS earnings growth over the next few years, I adjusted these analysts' forecasts to determine an annual growth rate from the slope.

NYSE: MS Future Profit, January 10, 19More

This translates into an annual growth rate of 1.3% based on the latest earnings level of $ 5.6 billion to the final forecast of $ 6.4 billion by 2022. This leads to a BPA of $ 5.57 for the last year of projections compared to the current EPS of $ 3.15. Analysts expect earnings growth to outstrip revenues by the end of 2022, which will lead to an increase in the margin from 15% to 17%.

Next steps:

The outlook is only one aspect of building an investment record for a security. For Morgan Stanley, I have compiled three relevant aspects on which you should deepen your research:

  1. Financial health: Does he have a healthy balance sheet? Watch our free balance sheet analysis with six simple controls key factors such as leverage and risk.
  2. Evaluation: What is Morgan Stanley worth today? Is the stock undervalued, even if its growth prospects are embedded in its intrinsic value? the infographics intrinsic value in our free research report lets you see if Morgan Stanley is currently misjudged by the market.
  3. Other high growth alternatives : Are there any other high-growth stocks you could hold instead of Morgan Stanley? To explore our interactive list of stocks with high growth potential to get an idea of ​​what you are missing, you may be missing!

To help readers understand the past volatility of the financial market in the short term, our goal is to provide you with a long-term research analysis based solely on fundamental data. Please note that our analysis does not take into account the latest price sensitive business announcements. The author is an independent contributor and, at the time of publication, he did not hold any position on the mentioned actions. For errors requiring correction, please contact the publisher at the address editorial-team@simplywallst.com.