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Is Morgan Stanley (MS) Stock Undervalued Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Morgan Stanley (MS - Free Report) is a stock many investors are watching right now. MS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 13.18, which compares to its industry's average of 13.89. MS's Forward P/E has been as high as 14.58 and as low as 11.69, with a median of 13.32, all within the past year.

We should also highlight that MS has a P/B ratio of 1.75. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. MS's current P/B looks attractive when compared to its industry's average P/B of 2.65. Over the past 12 months, MS's P/B has been as high as 1.92 and as low as 1.30, with a median of 1.66.

Finally, we should also recognize that MS has a P/CF ratio of 9.21. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 17.62. Over the past 52 weeks, MS's P/CF has been as high as 10.82 and as low as 7.53, with a median of 9.42.

These are just a handful of the figures considered in Morgan Stanley's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MS is an impressive value stock right now.


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