Skip to content

CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

US bank earnings and price forecasts: Morgan Stanley Q2 2022 results preview

Morgan Stanley Q2 2022 results are expected to show year on year decline in both revenue and earnings.

USA Source: Bloomberg

When are the Morgan Stanley results expected?

Morgan Stanley is set to release second quarter (Q2) results for the fiscal year 2022 on 14 July 2022.

What is ‘The Street’s’ expectations for the Q2 2022 results?

‘The Street’ expectations for the upcoming results are as follows:

How to trade Morgan Stanley into the results

How to trade Morgan Stanley into the results Source: Refinitiv
How to trade Morgan Stanley into the results Source: Refinitiv

Refinitive data shows a consensus of (29) analyst ratings at ‘buy’ for Morgan Stanley. A mean of estimates suggest a long-term share price target of $96.89 for the company. The current share price trades at a 26% discount to this assumed long-term fair value (as of 11 July 2022).

Client sentiment Source: IG
Client sentiment Source: IG

IG sentiment data shows that 84% of clients with open positions on the share (as of 11 July 2022) expect the price to rise over the near term, while 16% of these clients expect the price to fall.

How does Citigroup compare to its peers in terms of valuation?

How does Citigroup compare to its peers in terms of valuation Source: IG
How does Citigroup compare to its peers in terms of valuation Source: IG

The above table compares Morgan Stanley against a peer average (which includes Goldman Sachs, Bank of America (BoA), Wells Fargo, JP Morgan and Citigroup) in terms of dividend yield and price to earnings (P/E) multiples.

Morgan Stanley currently trades at a premium to its sector peers in terms of a historical and forward P/E, and a discount to the S&P 500 benchmark index (at a P/E of 28 times).

The group’s dividend offering has been higher than its peers in aggregate.

Morgan Stanley – technical view

Morgan Stanley – technical view Source: IG charts
Morgan Stanley – technical view Source: IG charts

The long-term price trend for the share price of Morgan Stanley remains down, evidenced by the price trading firmly below the 200 day simple moving average (SMA) represented by the blue line, and the red trend line on our chart. The share is however moving out of oversold territory in the very near term.

The long-term trend takes precedence with support considered at 72.80 and 66.65 respectively. A downside break (confirmed with a close) of the 72.80 level would call for further decline with 66.65 the initial target considered. Only if a rebound from oversold territory takes the price back above the major high at 86.70, would we reassess the merits of returning a long bias to trades on the company.

Summary:

  • Morgan Stanley is set to release Q2 2022 results on 14 July 2022
  • Q2 2022 are expected to show a YoY decline in both revenue and EPS
  • Long-term broker consensus suggests the share to currently be a ‘buy’, with a longer-term price target of $96.89
  • IG clients with open positions on the share are predominantly long
  • The long-term price trend for Morgan Stanley is down

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Act on stock opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.