Morgan Stanley Shares Spike on 112% Volume Surge Ranks 85th in Market Activity as Earnings Growth Outpaces Peers

Morgan Stanley (MS) surged 2.76% on August 22, 2025, with a trading volume of $1.00 billion, a 112.27% increase from the previous day, ranking 85th in market activity. The stock outperformed the S&P 500’s 1.52% gain and the Nasdaq’s 1.88% rise, reflecting strong investor interest in the investment bank.

Analysts highlight Morgan Stanley’s projected earnings growth, with consensus estimates forecasting Q3 EPS of $2.02, up 7.45% year-over-year, and full-year revenue of $66.86 billion, a 8.26% rise. The Zacks Rank system currently assigns the stock a #3 (Hold) rating, while its forward P/E of 16.34 exceeds the industry average of 16.27. The investment bank’s PEG ratio of 1.8 also indicates a premium valuation relative to peers, who average 1.52.

The Financial - Investment Bank industry, ranked #7 by Zacks, remains a top-performing sector, with historical data showing top half industries outperforming the bottom half by a 2:1 margin. Recent upward revisions to earnings estimates suggest improving short-term business outlooks, though the stock’s valuation metrics suggest caution for growth-focused investors.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to 2025 delivered a compound annual growth rate of 6.98%, with a maximum drawdown of 15.59% recorded during the backtest period. The approach showed steady growth overall, though a significant decline in mid-2023 underscores the need for risk management in high-volume strategies.