Morgan Stanley, a financial holding company, provides various financial products and services to corporations, governments, financial institutions, and individuals in the Americas, Europe, the Middle East, Africa, and Asia. It operates through Institutional Securities, Wealth Management, and Investment Management segments. The Institutional Securities segment offers capital raising and financial advisory services, including services related to the underwriting of debt, equity, and other securities, as well as advice on mergers and acquisitions, restructurings, real estate, and project finance. This segment also provides equity and fixed income products comprising sales, financing, prime brokerage, and market-making services; foreign exchange and commodities; corporate and commercial real estate loans, commercial mortgage and secured lending facilities, and financing for sales and trading customers, and asset-backed and mortgage lending; and wealth management services, investment, and research services. The Wealth Management segment offers financial advisor-led brokerage, custody, administrative, and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; annuity and insurance products; securities-based lending, residential real estate loans, and other lending products; banking; and retirement plan services to individual investors and small to medium-sized businesses and institutions. The Investment Management segment provides equity, fixed income, alternatives and solutions, and liquidity and overlay services to benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors, corporations, and individuals through institutional and intermediary channels. The company was founded in 1924 and is headquartered in New York, New York.

Morgan Stanley

A month has gone by since the last earnings report for Raymond James Financial, Inc. (RJF). Shares have lost about 2.9% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Raymond James Financial due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Raymond James Financial, Inc. before we dive into how investors and analysts have reacted as of late.
Raymond James Q3 Earnings Lag on Legal Reserve, IB & Trading Stay Solid
Raymond James’ third-quarter fiscal 2025 (ended June 30) adjusted earnings of $2.18 per share lagged the Zacks Consensus Estimate of $2.37. The bottom line also declined 9% from the prior-year quarter.
A $58 million reserve increase related to the settlement of a legal matter over bond underwritings for a specific issuer, sold to institutional investors between 2013 and 2015 was the primary reason that hurt the results. Higher expenses and provisions were other negatives.
On the other hand, robust investment banking and trading businesses supported top-line growth. Also, the Asset Management segment's performance was impressive.
CEO Paul Shoukry said, “Our investment banking pipeline remains strong, and we are growing increasingly optimistic about macroeconomic conditions although the environment remains uncertain.”
Net income available to common shareholders (GAAP basis) was $435 million or $2.12 per share, down from $491 million or $2.31 per share in the prior-year quarter.
Revenues Increase, Expenses Rise
Quarterly net revenues were $3.40 billion, up 9% year over year. The top line beat the Zacks Consensus Estimate of $3.36 billion.
Segment-wise, in the reported quarter, the Private Client Group recorded 36% growth in net revenues, Asset Management’s net revenues rose 10% and Capital Markets’ top line jumped 15%. Further, Bank registered a rise of 10% from the prior year's net revenues, while Others recorded a 68% decline in net revenues.
Non-interest expenses jumped 10% from the prior-year quarter to $2.85 billion. The increase was due to a rise in all cost components. Our estimate for non-interest expenses was $2.74 billion. Further, RJF recorded bank loan provision for credit losses of $15 million in the reported quarter against a provision benefit of $10 million in the year-ago quarter.
As of June 30, 2025, client assets under administration were $1.64 trillion, up 11% from the prior-year quarter. Financial assets under management of $263.2 billion grew 15%. Our estimates for client assets under administration and financial assets under management were $1.57 trillion and $248 billion, respectively.
Balance Sheet & Capital Ratios Strong
As of June 30, 2025, Raymond James had total assets of $84.82 billion, up 2% from the prior quarter. Total equity was stable at $12.18 billion.
Book value per share was $60.90, up from $54.08 as of June 30, 2024.
As of June 30, 2025, the total capital ratio was 24.3% compared with 23.6% as of June 30, 2024. The Tier 1 capital ratio was 23% compared with 22.2% as of June 2024-end.
Return on common equity (annualized basis) was 14.3% at the end of the reported quarter compared with 17.8% a year ago.
Update on Share Repurchases
In the reported quarter, the company repurchased shares worth $451 million at an average price of $137 per share.
Outlook
For fiscal 2025, management expects non-compensation expenses, excluding the bank loan loss provision for credit losses, unexpected legal and regulatory items, and non-GAAP adjustments, to be $2.1 billion, representing about 10% growth from the prior year’s adjusted non-compensation figure.
The company expects fiscal fourth-quarter asset management and related administrative fees to be up 9% sequentially, primarily driven by higher PCG assets and fee-based accounts at quarter end and one more business day during the quarter.
Based on current interest rates and quarter end balances, management expects aggregate NII and Raymond James Bank Deposit Program (RJBDP) third-party fees to decline 2% in the fourth quarter.
For fiscal 2025, management estimates the effective tax rate to be approximately 24%.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
Currently, Raymond James Financial has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Raymond James Financial has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Raymond James Financial belongs to the Zacks Financial - Investment Bank industry. Another stock from the same industry, Morgan Stanley (MS), has gained 1.1% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.
Morgan Stanley reported revenues of $16.79 billion in the last reported quarter, representing a year-over-year change of +11.8%. EPS of $2.13 for the same period compares with $1.82 a year ago.
Morgan Stanley is expected to post earnings of $2.02 per share for the current quarter, representing a year-over-year change of +7.5%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.1%.
Morgan Stanley has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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Why Is Raymond James Financial (RJF) Down 2.9% Since Last Earnings Report?

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Headquartered in New York, Morgan Stanley (MS) is a Finance stock that has seen a price change of 14.6% so far this year. The investment bank is currently shelling out a dividend of $1.00 per share, with a dividend yield of 2.78%. This compares to the Financial - Investment Bank industry's yield of 1.02% and the S&P 500's yield of 1.49%.
Looking at dividend growth, the company's current annualized dividend of $4.00 is up 12.7% from last year. Over the last 5 years, Morgan Stanley has increased its dividend 4 times on a year-over-year basis for an average annual increase of 22.85%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Morgan Stanley's current payout ratio is 42%, meaning it paid out 42% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for MS for this fiscal year. The Zacks Consensus Estimate for 2025 is $8.82 per share, with earnings expected to increase 10.94% from the year ago period.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. It's important to keep in mind that not all companies provide a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, MS is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
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This is Why Morgan Stanley (MS) is a Great Dividend Stock

The Goldman Sachs Group, Inc. GS is capitalizing on the ongoing rebound in global deal-making activities. The Global Banking & Markets division, which houses its investment banking (IB) business, remains the key growth engine. The division revenues accounted for 69.4% of the total net revenues as of June 30, 2025.
Although 2025 began with optimism, market sentiment briefly dipped following Trump’s tariff plans announced on 'Liberation Day' In April. Mergers and acquisitions (M&As) have since regained momentum, and Goldman’s IB fees rose 8% year over year in the first half of 2025. Specifically, advisory revenues rose 16% year over year, while debt underwriting revenues were up 2% and equity underwriting revenues grew nearly 1% in the first half of 2025.
Additionally, Goldman, one of the largest and well-known investment banks, maintained its leading position in announced and completed M&As, reinforcing its strength in Global Banking & Markets.
M&As are expected to remain robust in the second half of 2025, driven by stronger stock valuations, pent-up demand, and corporates’ pursuit of greater scale and competitiveness. This outlook is further supported by regulatory shifts under the Trump administration, with the Federal Reserve moving to loosen “well-managed” requirements and streamline approval processes, creating more conducive conditions for consolidation. These shifts should further bolster Goldman’s advisory revenues, wherein it already holds a commanding lead.
At the same time, the IPO market is showing renewed vitality. Investor demand for new issues is improving, particularly in technology and crypto-related offerings, aided by stronger equity markets, mainstream adoption of digital assets, favorable regulations, and a surge in Bitcoin prices. Importantly, the IPO pipeline is expected to remain solid through the end of 2025, signaling continued strength in equity underwriting.
With rising M&A deals and IPO pipelines, Goldman’s decent IB backlog and leadership position will continue to support its IB performance.
Here’s How GS Competes With MS & JPM in IB Business
Morgan Stanley's MS IB business has been subdued this year, with the metric inching up 1% from the prior-year quarter. Its fixed income underwriting fees decreased 2%, while equity underwriting income rose 5% year over year. Morgan Stanley’s advisory fees rose 2% year over year in the first half of 2025.
Morgan Stanley remains cautiously optimistic about the performance of the IB business, supported by a stable and diversified M&A pipeline.
JPMorgan’s JPM total IB fees (in the Commercial & Investment Bank segment) grew 9% year over year in the first half of 2025. Specifically, JPMorgan’s advisory and debt underwriting fees rose 11% and 14% year over year, respectively. On the contrary, equity underwriting fees fell 7%.
Given its leading market share, diversified capabilities, and global reach, JPMorgan is well-positioned to witness a solid performance in the upcoming period.
Goldman’s Price Performance, Valuation & Estimates
GS shares have gained 27.7% year to date compared with the industry’s growth of 23.2%.
Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, Goldman trades at a forward price-to-earnings (P/E) ratio of 14.64X, above the industry’s average of 14.47X.
Price-to-Earnings F12M
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GS’s 2025 and 2026 earnings implies year-over-year rallies of 12.6% and 14.9%, respectively. Likewise, the Zacks Consensus Estimate for GS’s 2025 and 2026 sales implies year-over-year increases of 6.3% and 6.5%, respectively. The estimates for both years have been revised upward over the past 30 days.
Estimates Revision Trend
Image Source: Zacks Investment Research
Goldman currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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IPO & M&A Market Rebound: What it Means for Goldman's IB Business

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the JPMorgan Equity Focus ETF (Symbol: JPEF) where we have detected an approximate $72.1 million dollar outflow -- that's a 4.4% decrease week over week (from 22,630,111 to 21,630,111). Among the largest underlying components of JPEF, in trading today Loews Corp. (Symbol: L) is up about 0.6%, Morgan Stanley (Symbol: MS) is down about 0.2%, and HCA Healthcare Inc (Symbol: HCA) is up by about 2.6%. For a complete list of holdings, visit the JPEF Holdings page » The chart below shows the one year price performance of JPEF, versus its 200 day moving average:
Looking at the chart above, JPEF's low point in its 52 week range is $55.459 per share, with $72.44 as the 52 week high point — that compares with a last trade of $72.16. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

JPEF, L, MS, HCA: Large Outflows Detected at ETF

Predicting the Next Rule Breaker Buyout

It has been about a month since the last earnings report for Morgan Stanley (MS). Shares have added about 5.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Morgan Stanley due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Morgan Stanley before we dive into how investors and analysts have reacted as of late.
Morgan Stanley Beats Q2 Earnings on Robust Trading, IB Remains Subdued
Morgan Stanley’s second-quarter 2025 earnings of $2.13 per share handily outpaced the Zacks Consensus Estimate of $1.93. Also, the bottom line rose 17% from the prior-year quarter.
Morgan Stanley’s IB business performance was subdued. Advisory fees declined 14% year over year as completed M&A transactions dropped. Further, lower non-investment grade issuances hurt the company’s fixed income underwriting fees, which decreased 21%. On the other hand, equity underwriting income jumped 42%. So, total IB fees (in the IS division) fell 5% to $1.54 billion. We had projected it to be $1.55 billion.
Meanwhile, as expected, the company posted a solid trading performance. Equity trading revenues increased 23% year over year to $3.72 billion and fixed-income trading income was up 9% to $2.18 billion. Our projections for equity and fixed-income trading revenues were $3.03 billion and $2.12 billion, respectively.
Further, the performance of wealth management and investment management businesses was impressive. The company’s NII increased, given higher lending activities. The increase in total non-interest expenses and provisions posed the undermining factors.
Net income applicable to common shareholders was $3.39 billion, up 15% from the year-ago quarter. Our estimate for the metric was $3.22 billion.
Revenues Jump, Expenses Rise
Quarterly net revenues were $16.79 billion, up 12% from the prior-year quarter. The top line handily beat the Zacks Consensus Estimate of $15.92 billion.
NII was $2.34 billion, up 14%. We had projected NII of $2.27 billion.
Total non-interest revenues of $14.45 billion rose 12%. Our estimate for the metric was $13.63 billion.
Total non-interest expenses were $11.97 billion, up 10%. Our estimate for the metric was $11.59 billion.
Provision for credit losses was $196 million, up substantially from $76 million in the prior-year quarter. We had projected the metric to be $59.2 million.
Segment Performance
Institutional Securities: Pre-tax income was $2.11 billion, rising 3% from the prior-year quarter. Our estimate for the same was $2.21 billion.
Net revenues were $7.64 billion, up 9% year over year. The upside resulted from increased equity underwriting income and trading revenues, partially offset by lower advisory revenues and fixed income underwriting revenues. We had projected revenues of $7.48 billion.
Wealth Management: Pre-tax income totaled $2.2 billion, jumping 21% year over year. Our estimate for the metric was $1.83 billion.
Net revenues were $7.76 billion, rising 14%, driven by higher asset management revenues, transactional revenues and NII. We had projected revenues of $7.11 billion.
Total client assets were $6.49 trillion as of June 30, 2025, up 14% year over year. We had projected the metric to be $6.06 trillion.
Investment Management: Pre-tax income was $323 million, climbing 45% from the year-ago quarter. Our estimate for the same was $217.2 million.
Net revenues were $1.55 billion, up 12%. The improvement was attributable to a rise in asset management and related fees, and performance-based income and other revenues. We had projected revenues of $1.47 billion.
As of June 30, 2025, total assets under management or supervision were $1.71 trillion, up 13% year over year. Our estimate for the metric was $1.67 trillion.
Capital Position Solid
As of June 30, 2025, book value per share was $61.59, up from $56.80 in the corresponding period of 2024. The tangible book value per share was $47.25, up from $42.30 as of June 30, 2024.
Morgan Stanley’s Tier 1 capital ratio (advanced approach) was 17.6% compared with 17.3% in the year-ago quarter. The common equity Tier 1 capital ratio was 15% compared with 15.2% a year ago.
Update on Share Repurchase Plan
In the reported quarter, Morgan Stanley repurchased 8 million shares for $1 billion.
Additionally, as the company cleared the 2025 stress test, it reauthorized a multi-year share repurchase program of up to $20 billion.
2025 Outlook
Management expects the WM segment NII to be relatively stable sequentially in the third quarter of 2025. For 2025, NII is expected to grow.
The company expects M&As and underwriting activities to find strength in the second half of the year.
The company expects the effective tax rate to be approximately 24% in the second half of 2025.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in estimates revision.
VGM Scores
Currently, Morgan Stanley has a average Growth Score of C, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Morgan Stanley has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Morgan Stanley is part of the Zacks Financial - Investment Bank industry. Over the past month, Citigroup (C), a stock from the same industry, has gained 2.6%. The company reported its results for the quarter ended June 2025 more than a month ago.
Citigroup reported revenues of $21.67 billion in the last reported quarter, representing a year-over-year change of +7.6%. EPS of $1.96 for the same period compares with $1.52 a year ago.
For the current quarter, Citigroup is expected to post earnings of $1.86 per share, indicating a change of +23.2% from the year-ago quarter. The Zacks Consensus Estimate has changed +2.1% over the last 30 days.
Citigroup has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.
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Morgan Stanley (MS) Up 5.4% Since Last Earnings Report: Can It Continue?

JPMorgan’s JPM capital markets operations, housed in its Commercial & Investment Bank (CIB) segment, are a core earnings driver, contributing roughly 40% of total net revenues. The segment’s performance is highly correlated with deal-making momentum, trading activity and overall market conditions, making it a key beneficiary of a sustained capital markets revival.
After a slowdown in 2022 and 2023 due to geopolitical tensions, recession fears and inflationary pressures, the capital markets staged a notable rebound last year. JPMorgan’s investment banking (IB) fees within the CIB surged 36% year over year, reflecting improved underwriting volumes and advisory mandates, while markets revenues rose 7% on elevated volatility and trading demand. Importantly, the bank retained its #1 position in global IB fees, underscoring its competitive strength and client franchise depth even in challenging conditions.
While early 2025 saw mixed sentiment, with optimism tempered by tariff-driven policy shocks, deal-making has regained momentum. JPMorgan captured an 8.9% IB wallet share in the first half of 2025, with IB fee growth expected to continue at a steady pace. This sustained uptrend in IB fees should provide a stable growth anchor for the CIB segment, as corporates re-enter equity and debt markets for capital raising and strategic transactions.
On the trading side, markets revenues have historically been more volatile, swinging with macro uncertainty and client risk appetite. Hence, heightened geopolitical tensions, tariff-related uncertainty and episodic volatility in 2025 have spurred client hedging and trading needs, supporting revenue growth in the first half of the year. While structural normalization in trading activity is inevitable over time, JPMorgan’s broad product coverage across fixed income, currencies, commodities and equities positions it to capture upside during volatility spikes.
The revival of capital markets provides JPMorgan with a dual tailwind: a steady lift from the recovery in deal-making and opportunistic boosts from trading in periods of market dislocation. Given its leading market share, diversified capabilities and global reach, the bank is well-positioned to translate this cyclical upswing into sustained earnings momentum over time.
How JPMorgan Stacks Up Against Peers in Capital Markets
Similar to JPM, Bank of America BAC witnessed subdued IB performance in 2022 and 2023, with revival happening last year. In 2024, the company’s IB fees soared 31% year over year. Then, in the first six months of 2025, Bank of America’s IB fees declined on a year-over-year basis on muted industry-wide trends.
Coming to the trading business, Bank of America’s sales and trading revenues have been increasing since 2022 (the metric increased 13% year over year in the first half of 2025). Yet, the volatile nature of the business and expectations that it will gradually normalize toward the pre-pandemic level are likely to make growth in the same challenging.
Another key peer, Morgan Stanley MS, leans heavily on the IB business to sustain profitability, with IB revenues jumping 36% last year after plunging in 2023 and 2022. But performance of the company’s IB business has been subdued this year, with the metric rising just 1% from the prior-year quarter. Nonetheless, Morgan Stanley remains cautiously optimistic about the performance of the IB business, supported by a stable and diversified M&A pipeline.
Also, Morgan Stanley’s trading business performance has been stellar over the past several quarters, attributable to uncertainty surrounding the tariff plans and macroeconomic headwinds. As market volatility and client activity are expected to remain decent, the company’s trading business will likely continue to grow.
JPMorgan’s Price Performance, Valuation and Estimates
JPMorgan’s shares have soared 21.2% this year, outperforming the S&P 500 Index’s gain of 9.5%.
JPM’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, JPM trades at a 12-month trailing price-to-tangible book (P/TB) of 2.98X, above the industry average.
P/TB Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for JPMorgan’s 2025 earnings implies a decline of 1.3% on a year-over-year basis, while 2026 earnings are expected to grow at a rate of 4.5%. In the past week, earnings estimates for 2025 and 2026 have moved marginally upward.
Earnings Estimates
Image Source: Zacks Investment Research
JPM currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Capital Markets Bounce Back: What This Means for JPMorgan's Prospects

Amid the broader stock market rally yesterday, Morgan Stanley MS shares touched an all-time high of $148.23 during the trading session to finally close at $147.29. The rally came after the release of the latest inflation report, which suggests that core inflation increased 3.1% year over year in July 2025, more than June’s 2.9% rise.
As Wall Street digests the inflation data, investors have become more optimistic about a Fed rate cut next month, which drove the market rally.
In the past 3 months, Morgan Stanley shares have gained 12.4%, outperforming the S&P 500 Index’s 8.8% rise and its industry’s 11.3% growth. While MS has performed better than its peer, Bank of America BAC, it has underperformed another close competitor, Citigroup C. The BAC stock has moved up 6.2%, whereas shares of Citigroup have rallied 27.2% in the same time frame.
Image Source: Zacks Investment Research
Does the MS stock have more upside left despite hitting an all-time high? Let us find out.
What’s Aiding Morgan Stanley’s Performance?
Increased Focus on Wealth & Asset Management Operations: Morgan Stanley has lowered its reliance on the capital markets for income generation. It has now been focusing on expanding its wealth and asset management operations. The acquisitions of Eaton Vance, E*Trade Financial and Shareworks are steps in this direction. These moves have bolstered the company’s diversification efforts, enhanced stability and created a more balanced revenue stream across market cycles.
The wealth and asset management businesses’ aggregate contribution to total net revenues jumped to more than 55% in 2024 from 26% in 2010. We project both segments' total contribution (in aggregate) to the top line to be 53.8% in 2025.
The wealth management segment’s total client assets witnessed a five-year (2019-2024) compound annual growth rate (CAGR) of 18.1%, while the investment management segment’s total assets under management saw a CAGR of 24.7% over the same period. The upward momentum is expected to continue as the operating environment becomes more favorable.
Strategic Alliances: MS’s partnership with Mitsubishi UFJ Financial Group, Inc. will likely keep supporting its profitability. In 2023, the companies announced plans to deepen their 15-year alliance by merging certain operations within their Japanese brokerage joint ventures. The new alliance saw combined Japanese equity research, sales and execution services for institutional clients at Mitsubishi UFJ Morgan Stanley Securities and Morgan Stanley MUFG Securities. Also, their equity underwriting business has been rearranged between the two brokerage units. These efforts will solidify the company’s position in Japan’s market.
Also, this has helped the company achieve record equity net revenues, particularly in Asia, through outperformance in prime brokerage and derivatives, led by solid client activity amid heightened volatility. The company’s Asia region revenues jumped 28% year over year to $4.65 billion in the first half of 2025.
Solid Balance Sheet & Capital Position: Morgan Stanley has a solid balance sheet. As of June 30, 2025, the company had long-term debt of $320.1 billion, with $23.8 billion expected to mature over the next 12 months. The company’s average liquidity resources were $363.4 billion as of the same date.
MS’s capital distribution plans have been impressive. Following the clearance of the 2025 stress test, it announced an 8% hike in quarterly dividend to $1.00 per share and reauthorized a multi-year share repurchase program of up to $20 billion (no expiration date). The company has increased its dividend five times in the last five years, with an annualized growth rate of 22.8%.
Given a solid liquidity position and earnings strength, Morgan Stanley is expected to be able to continue with efficient capital distribution activities, thereby enhancing shareholder value.
What’s Hurting MS’s Growth
Rising Expense Base: Despite Morgan Stanley’s restructuring and streamlining efforts that resulted in achieving its cost savings target of $1 billion in 2017, overall expenses have been increasing. Though expenses declined in 2022, the metric witnessed a five-year (ended 2024) CAGR of 7.8%. The rising trend continued in the first half of 2025.
Expenses are expected to remain elevated on the steady increase in revenues (leading to higher compensation costs) and inflation, as well as the company’s investments in franchise and inorganic growth efforts.
Expense Trend
Image Source: Zacks Investment Research
Reliance on Trading Revenues: Morgan Stanley’s over-dependence on trading revenues is worrisome. While sales and trading revenues improved in 2021, 2022 and 2024, they declined in 2023. Because of the uncertainty surrounding the tariff plans, trading revenues increased again in the first half of 2025. However, the volatile nature of the business and the expectation that it will gradually normalize toward the pre-pandemic level are likely to make growth challenging in the upcoming quarters.
How to Approach Morgan Stanley Stock Now
MS’s efforts to become less dependent on capital markets-driven revenues, its inorganic expansion efforts/strategic alliances, along with relatively high rates, are expected to support financials. Moreover, supported by a solid balance sheet position, the company is expected to be able to meet near-term debt obligations, even if the economic situation worsens.
Analysts seem to be bullish regarding MS’s earnings growth prospects. Over the past 30 days, the Zacks Consensus Estimate for the company’s 2025 and 2026 earnings has moved upward. The estimates reflect year-over-year growth rates of 10.9% for 2025 and 8% for 2026.
Earnings Estimates
Image Source: Zacks Investment Research
However, rising expenses, given higher compensation costs and inorganic growth efforts, will likely hurt the company’s profitability in the near term. High reliance on trading revenues is another headwind.
Hence, investors should not rush to buy the MS stock now; instead, they should keep this Zacks Rank #3 (Hold) stock on their radars and wait for an attractive entry point. Those who already own the MS stock in their portfolio can retain it because it is less likely to disappoint over the long term.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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Morgan Stanley Stock Touches All-Time High: Should You Invest?

The Goldman Sachs Group, Inc. GS shares have jumped 26.8% year to date, outperforming the industry's 22.2% rise. Shares of its peers, JPMorgan JPM and Morgan Stanley MS, have risen 22.8% and 16.9%, respectively, over the same time frame.
Price Performance
Image Source: Zacks Investment Research
With such strong momentum, investors are wondering whether to hold the stock for now or cash out the profit. Let us delve deeper and analyze what is driving the rally and whether there is more scope to grow.
Goldman’s Strategic Streamlining Paying Off
Goldman’s streamlining effort has been underway for some time as it retreats from the underperforming consumer banking ventures. The company is exiting its non-core consumer banking business and sharpening its focus on Global Banking and Markets and Asset and Wealth Management (AWM) divisions.
The Global Banking and Markets segment has been witnessing a rise in revenues over the past couple of years. The segment's net revenue recorded a compounded annual growth rate (CAGR) of 3.7% from 2022 to 2024, with the metric rising 16% year over year in the first half of 2025.
The AWM division’s net revenues witnessed a CAGR of 9.9% from 2022 to 2024. In the first half of 2025, the segment’s net revenues declined 3% year over year due to a decline in equity and debt investments, which were likely caused by market uncertainty.
Nonetheless, the segment is expanding into fee-based revenue streams. As of June 30, 2025, it managed $3.3 trillion in assets under supervision and is experiencing strong momentum in alternative investments and customized wealth solutions for ultra-high-net-worth individuals.
Moreover, GS is placing more emphasis on its AWM division, viewing it as a more stable revenue source. The company is reportedly exploring acquisitions to expand its AWM footprint.
During the second-quarterearnings call management highlighted the critical role of scale in growing this business. CEO David Solomon noted, “There’s got to be a strategic fit in terms of things that we’re prioritizing in the growth of our asset and wealth management franchise.”
Revival of IB Business to Aid GS
Goldman’s investment banking (IB) revenues jumped 24% in 2024 to $7.73 billion from 2023, rebounding from a slump during the previous couple of years when global deal-making stalled amid the Russia-Ukraine conflict, recession fears, and high inflation. Despite subdued IB performance, the company maintained its #1 ranking in both announced and completed M&A.
This year has had its share of hiccups. It began on an optimistic note, although the market sentiment cooled after Trump’s tariff policies launched on 'Liberation Day'. Deal-making activities have picked up since then, with the uptrend in IB revenues continuing through the first six months of 2025. A strong deal pipeline and Goldman’s leadership position signal further upside as macro conditions improve.
Following the broader industry trend, JPMorgan’s IB fees rose 10% year over year, while Morgan Stanley’s IB fees increased 1% year over year in the first six months of 2025.
Goldman’s Strong Liquidity Profile Aids Capital Distribution
GS maintains a fortress balance sheet, with the Tier 1 capital ratios well above regulatory requirements. This financial strength allows it to return capital to shareholders aggressively through buybacks and a healthy dividend yield.
As of June 30, 2025, cash and cash equivalents were $153 billion, and near-term borrowings were $69 billion. Given its strong liquidity, the company rewards its shareholders handsomely.
Post-clearing the 2025 Fed stress test, the company increased the quarterly dividend to $4.00 per common share, marking an increase of 33.3% from the prior payout. In the past five years, the company has hiked dividends five times, with an annualized growth rate of 22%. Currently, its payout ratio sits at 26% of earnings.
Similarly, JPMorgan and Morgan Stanley raised their dividends five times over the past five years. At present, JPMorgan has a payout ratio of 29%, while Morgan Stanley’s payout ratio is 42%.
Additionally, Goldman has a share repurchase plan in place. At the end of the second quarter of 2025, GS had $40.6 billion worth of shares available under authorization.
GS’s Estimate & Valuation Analysis
The Zacks Consensus Estimate for Goldman’s 2025 and 2026 sales implies year-over-year growth of 6.2% and 6.5%, respectively. The Zacks Consensus Estimate for 2025 and 2026 earnings implies year-over-year growth of 12.4% and 14.9%, respectively.
Over the past month, the Zacks Consensus Estimate for 2025 and 2026 earnings has been revised upward to $45.63 and $52.40, respectively.
Estimates Revision Trend
Image Source: Zacks Investment Research
In terms of valuation, the GS stock looks expensive compared to the industry. The stock is trading at a forward price/earnings (P/E) of 14.45X compared with the industry average of 14.39X. Its peers, JPMorgan and Morgan Stanley, have forward P/E multiples of 14.48X and 15.56X, respectively.
Price-to-Earnings F12M
Image Source: Zacks Investment Research
How to Approach Goldman’s Stock Now?
Goldman’s growth initiatives, strong capital returns, and an improving wealth management business will support its financials in the long term. The rebound in M&As and robust deal pipeline will continue to support the company’s IB business. Its strong liquidity profile will enable a sustainable capital distribution plan.
The company’s solid first-half 2025 performance is an indication of its trajectory relative to its mid-term goals of achieving 14-16% return on equity (ROE) and a 60% efficiency ratio.
However, the constantly evolving macroeconomic backdrop, given uncertainty related to tariff plans and their impacts on inflation, will likely affect the company’s performance. Also, IB business remains cyclical and highly dependent on broader market conditions and client engagement.
Hence, GS’s performance in the near term will be greatly influenced by its capacity to navigate these challenges to maximize financial performance. Investors should keep a close eye on these issues before taking a well-informed investment decision.
At present, Goldman carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Goldman Shares Gain 26.8% YTD: Should you Hold the Stock for Now?

For investors eyeing the heart of Wall Street’s deal-making engine, JPMorgan JPM and Morgan Stanley MS are standout options. From advising on multibillion-dollar mergers and acquisitions (M&As) to underwriting high-profile IPOs and navigating volatile capital markets, these investment banking (IB) powerhouses shape the flow of global finance.
While the long-term outlook for IB remains robust, near-term momentum is less certain. This year began on a wave of optimism, but market sentiment cooled sharply after Trump’s ‘Liberation Day’ tariff policies took effect. Since then, deal-making has regained traction, with IB fees climbing steadily through the first half of the year.
Against this backdrop, the question arises: Which IB firm – JPMorgan or Morgan Stanley – offers the better upside potential?
The Case for JPMorgan
JPMorgan, while more diversified across banking and lending, remains a dominant force in the IB business, ranking #1 for global IB fees. In 2024, the company’s total IB fees soared 36% to $8.91 billion after declining in 2023 and 2022.
Despite tariff-related ambiguity and extreme market volatility, momentum persisted in the first half of 2025, with JPMorgan having a wallet share of 8.9%. During the first six months of 2025, IB fees rose 10% year over year to $4.68 billion, driven by higher advisory fees and underwriting income.
While the near-term macro prospects are cloudy, clarity on tariff plans and other economic data shows that IB business is picking up pace. The healthy IB pipeline, an active M&A market and JPMorgan’s leadership position ensure even stronger growth once the macro situation changes.
Further, JPM has been benefiting from heightened market volatility and rising client activity. This has been driving the company’s trading business. The markets revenues jumped in 2024 and the first half of 2025 on the back of tariff-related ambiguity and massive volatility. So, economic volatility is not necessarily bad for this business, although it makes forecasting difficult.
Beyond IB business, JPMorgan, the largest U.S. bank, spans the full spectrum of financial services. Nearly half its revenue comes from net interest income (NII), which is set to rise as the rates remain steady. Management projects NII to be roughly $95.5 billion for 2025 (up more than 3% year over year), while net yield on interest-earning assets is likely to stabilize.
The Case for Morgan Stanley
Morgan Stanley has leaned heavily into the IB business, though it has been diversifying into more stable revenue-generating sources like asset and wealth management businesses, creating a more balanced revenue stream across market cycles. Similar to JPM, the company’s IB revenues surged 36% last year to $6.71 billion after plunging in 2023 and 2022.
However, unlike JPMorgan, the performance of the company’s IB business has been subdued this year, with the metric rising just 1% from the prior-year quarter. Nonetheless, MS remains cautiously optimistic about the performance of the IB business this year, supported by a stable and diversified M&A pipeline. Hence, once the macroeconomic uncertainty eases, the company will be able to capitalize on it.
Moreover, Morgan Stanley’s trading business performance has been stellar over the past several months, attributable to uncertainty surrounding the tariff plans and macroeconomic headwinds. As market volatility and client activity are expected to remain decent, the company’s trading business will likely continue to grow.
As mentioned above, MS is focusing on expanding its wealth and asset management operations, which supported its financials during the post-pandemic slowdown in the IB business. Both businesses’ aggregate contribution to total net revenues jumped to more than 55% in 2024 from 26% in 2010. The momentum persisted in the first six months of 2025, with total client assets across both segments reaching $8.2 trillion. This brings the company closer to its longstanding $10 trillion asset management goal set by former CEO James Gorman.
JPM & MS: Price Performance, Valuation & Other Comparisons
While 2025 started on a positive note, Trump’s tariff plans and resultant massive market volatility upended bullish investor sentiments. So far this year, shares of JPMorgan and Morgan Stanley have gained 20.8% and 14.4%, respectively.
JPM & MS YTD Price Performance
Image Source: Zacks Investment Research
JPM has outpaced the Zacks Investment Bank industry and the S&P 500 Index. On the other hand, MS has outperformed the broader index while lagging the industry. Hence, in terms of investor sentiments, JPMorgan clearly has the edge.
In terms of valuation, JPMorgan is currently trading at a 12-month forward price-to-earnings (P/E) of 14.52X. The MS stock, on the other hand, is currently trading at a 12-month forward P/E of 15.56X.
P/E F12M
Image Source: Zacks Investment Research
Therefore, JPMorgan is inexpensive compared to Morgan Stanley.
Also, JPMorgan’s return on equity (ROE) of 16.93% is above Morgan Stanley’s 15.20%. Also, both outscore the industry’s ROE of 14.32%. This reflects JPM’s efficient use of shareholder funds to generate profits.
ROE
Image Source: Zacks Investment Research
How Do Estimates Compare for JPMorgan & MS?
The Zacks Consensus Estimate for JPM’s 2025 revenues implies a marginal year-over-year decline, while for 2026, revenues are expected to grow 3.4%. Likewise, the consensus estimate for 2025 earnings indicates a 1.5% fall, while the same is anticipated to rise 4.6% for 2026. Earnings estimates for both years have been revised upward over the past week.
JPM Estimate Revision
Image Source: Zacks Investment Research
On the contrary, analysts are more bullish on Morgan Stanley’s prospects. The consensus mark for 2025 and 2026 revenues suggests a year-over-year increase of 8.3% and 4.2%, respectively. Also, the consensus estimate for earnings suggests a 10.9% and 8% increase for 2025 and 2026, respectively. Earnings estimates for both years have been revised north over the past seven days.
MS Estimate Revision
Image Source: Zacks Investment Research
JPM vs. MS: Which IB Stock Deserves a Spot in Your Portfolio?
JPMorgan stands out over Morgan Stanley for its ability to pair IB dominance with broad-based revenue streams. The company’s IB fees have been steadily improving, with it securing the #1global marketshare at 8.9%. Its trading arm thrives in volatile conditions, turning tariff-driven uncertainty into revenue growth, while its diversified model cushions against IB cyclicality.
Nearly half of JPM’s revenues come from net interest income, projected to touch $95.5 billion in 2025, up more than 3% year over year. Trading at a lower P/E and delivering stronger ROE and stock gains, JPM offers compelling upside with reduced risk.
At present, JPMorgan sports a Zacks Rank # 1 (Strong Buy) and Morgan Stanley carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.