5 Best Undervalued Stocks to Buy Now

4. Morgan Stanley (NYSE:MS)

Number of Hedge Fund Holders: 61

PE Ratio as of June 24: 9.89

Morgan Stanley (NYSE:MS) is among our top undervalued stock picks from the financial services sector. As of June 24, the stock has a PE ratio of 9.89 and a dividend yield of 3.75%. Morgan Stanley (NYSE:MS) is proactive with M&A activity and on June 22, announced that its workplace solutions business, Morgan Stanley at Work, has successfully acquired American Financial Systems. With this move, Morgan Stanley (NYSE:MS) anticipates delivering value to plan sponsors and their participants.

As of May 3, Oppenheimer analyst Chris Kotowski has a $111 price target and buy-side Outperform rating on Morgan Stanley (NYSE:MS).

Insider Monkey found 61 hedge funds bullish on Morgan Stanley (NYSE:MS) at the close of Q1 2022. The total stakes of the hedge funds were valued at $3.25 billion.

As of March 31, Eagle Capital Management is the top shareholder in Morgan Stanley (NYSE:MS) and holds stakes of $1.23 billion in the major bank.

Artisan Partners mentioned Morgan Stanley (NYSE:MS) in its Q3 2021 investor letter, Here is what the firm said:

“MorganStanley, a leading global financial services company, came into the portfolio in late 2020 as a result of its purchase of E*TRADE. The acquisition is a great fit for Morgan Stanley’s wealth management platform and provides a considerable amount of non-interest-bearing deposit funding. James Gorman, chairman and CEO, has steadily derisked the business by adding less volatile fee streams to complement its leading positions in cyclical businesses such as advisory, equities and FICC (fixed income, currencies and commodities). We believe the company will prove its resiliency and value over the long term.”