Will MS's earnings momentum continue next quarter?

**Morgan Stanley's (MS) earnings momentum is likely to continue next quarter**, based on several key indicators:

1. **Recent Performance**: MS has shown strong earnings growth, with a net income year-over-year growth rate of 141.66% and a revenue growth rate of 25.8% as of the latest report period. This robust performance is a clear indication of ongoing momentum.

|code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|---|---|
|MS|MS.N|Morgan Stanley|2024 Q1|14.14441147378833|4.2639663842391675|18.82352941176471|169|
|MS|MS.N|Morgan Stanley|2024 Q2|40.34218820351193|11.607341903841867|46.7741935483871|169|
|MS|MS.N|Morgan Stanley|2024 Q3|32.484599589322386|15.896933624651549|36.23188405797102|169|
|MS|MS.N|Morgan Stanley|2024 Q4|141.66125892277742|25.798697270471465|161.17647058823533|169|

2. **Analyst Optimism**: Analysts at Zacks Research have increased their Q1 2025 earnings estimates for MS, forecasting an EPS of $2.21, up from $2.18. This adjustment reflects confidence in MS's continued earnings strength.
3. **Sector-Wide Outlook**: Morgan Stanley's chief investment officer, Mike Wilson, predicts a meaningful rotation back into U.S. stocks, which could benefit MS given its strong investment banking and wealth management franchises. This sector-wide optimism is likely to support MS's earnings momentum.
4. **Currency and Macro Factors**: Morgan Stanley has raised its index targets for Chinese shares, citing improved earnings growth forecasts and a more optimistic outlook for the economy and currency. This positive macro outlook can often translate into stronger corporate performance.
5. **Valuation Metrics**: MS's recent stock price of $115.33 is below its estimate EPS of $1.64, suggesting that the stock may be undervalued. If this undervaluation corrects, it could lead to further earnings growth as the market revalues the stock.

In conclusion, the combination of strong financial performance, analyst optimism, sector-wide outlook, currency and macro factors, and valuation metrics suggest that MS's earnings momentum could continue into next quarter. However, it's important to monitor any changes in market conditions or company-specific factors that could impact this outlook.