Morgan Stanley Stock Rallies on Wealth Management Fees
Morgan Stanley stock has been on a tear in 2026, rising nearly 20% so far this year. The bank's shares are beating those of its major peers, including Goldman Sachs and JPMorgan Chase.
However, the latest move higher in long-term interest rates has rattled the stock, sending it down 0.6% to $212.03. To break through the key level of $250, Morgan Stanley will need to clear its 52-week high of $230.98 and see analyst targets move up.
The bank's mix of wealth management fees and capital markets revenue has been a major driver of its success this year, with record revenue of $21.35 billion and EPS of $3.46 in Q2 2026. Equity trading revenue climbed 69% to $6.30 billion, while investment banking rose 58% to $2.44 billion.
Despite the headwinds from rising rates, Morgan Stanley's forward EPS is $13.42, and its implied P/E ratio comes to 17x. This suggests that the stock has room for multiple expansion without stronger earnings revisions.