11 Most Profitable Financial Stocks to Invest In

6. Morgan Stanley (NYSE:MS)

Net Income (TTM): $16.25 billion

Profit Margin (TTM): 24.0%

Number of Hedge Fund holdings: 69

On January 16, RBC Capital lifted the price target on Morgan Stanley (NYSE:MS) to $207 from $185 and maintained a Sector Perform rating. The firm said that the investment bank’s solid business model, supported by Institutional Securities, Wealth Management, and Investment Management, demonstrated robust results driven by investment banking and trading operations.

According to RBC Capital, this diversified business model has helped Morgan Stanley (NYSE:MS) to deliver an impressive return on tangible common equity (ROTCE) of over 20% to shareholders. A segment that particularly stood out was Wealth Management, a division that reported 31% pre-tax margin. Through its capital return initiatives, the bank is expected to return up to 100% of its earnings to shareholders, the firm noted.

A day earlier, Morgan Stanley (NYSE:MS) reported fourth-quarter FY25 financial results, delivering an EPS of $2.68 and revenue of $17.9 billion, thus outperforming projections of $2.41 and $17.72 billion, respectively. Since the announcement, the stock has declined by approximately 7%.

Morgan Stanley (NYSE:MS) is a New York-based financial holding company that provides a range of financial products and services. Incorporated in 1924, the company operates through three segments: Institutional Securities, Wealth Management, and Investment Management.