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Investors who owned stocks since 2016 generally experienced some big gains. In fact, the SPDR S&P 500 (NYSE: SPY) total return in the past five years is 120.4%. But there’s no question some big-name stocks performed better than others along the way.
Morgan Stanley’s Big Run: One market leader of the past five years was Morgan Stanley (NYSE: MS).
Big banks were crushed during the worst of the financial crisis in 2008 and 2009. Among the big banks that survived, Morgan Stanley experienced one of the most difficult situations.
In fact, Morgan Stanley needed a $9-billion investment from Mitsubishi UFJ Financial Group, Inc. (NASDAQ: MUFG) in September 2008 and $107.3 billion in loans from the U.S. Federal Reserve just to make it through the crisis.
By the beginning of 2016, Morgan Stanley shares had worked all the way up to around $31. Within months, the stock had dropped down to $21.16, its low point of the past five years, following a bout of early-2016 volatility related to concerns over an economic slowdown in China.
Morgan Stanley then went on a tear for the remainder of 2016, approaching $45 by the end of the year. Morgan Stanley hit the $50 level for the first time since the crisis in late 2017, rallying as high as $59.38 in early 2018 before pulling back to $36.74 by the end of the year.
Morgan Stanley In 2021, Beyond: Morgan Stanley shares rebounded as high as $57.57 in early 2020 before the COVID-19 pandemic sell-off pushed the stock back down to $27.20 in March.
Since then, Morgan Stanley shares have soared to new highs and are now trading above $75.
Morgan Stanley investors that bought and held on through a volatile five-year period turned a significant profit. In fact, $1,000 worth of Morgan Stanley stock bought in 2016 would be worth about $3,277 today, assuming reinvested dividends.
Looking ahead, analysts expect Morgan Stanley to take a breather in the next 12 months. The average price target among the 24 analysts covering the stock is $76.50, suggesting only 1.6% upside from current levels.
(Photo: Morgan Stanley)
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