Jim Cramer’s Game Plan: 12 Stocks in Focus This Week

8. Morgan Stanley (NYSE:MS)

Number of Hedge Fund Holders: 55

Cramer expects Morgan Stanley (NYSE:MS) to report solid earnings on Thursday.

“Thursday we have more of the same. This time, Bank of America, U.S. Bancorp, Morgan Stanley, and PNC Financial. I actually expect all these to be good too.”

Morgan Stanley (NYSE:MS) is a financial services firm offering a variety of financial products, including capital raising, financial advisory, brokerage, and investment management services. Through the first nine months of the year, the company achieved $200 billion in organic growth. In the third quarter of 2024, the company saw a rise in advisory revenues, which totaled $546 million. This increase was driven by a modest uptick in completed M&A transactions, with particular strength in the Europe, Middle East, and Africa (EMEA) region.

CEO Ted Pick discussed several key trends in the financial markets, particularly in the IPO and private equity sectors. He highlighted that sponsors in the IPO market currently have approximately $1.3 trillion in available capital, referred to as “dry powder.” He also pointed out that portfolio companies in the market amount to between $3 trillion to $4 trillion, spanning around 10,000 firms.

Morgan Stanley’s (NYSE:MS) Pick noted a significant shift in market behavior, emphasizing that, for the first time in nearly 15 years, capital deployment in private equity is outpacing fundraising. Despite the challenges faced by these markets, he expressed optimism about the eventual return of IPOs, particularly from larger companies, as the IPO market gradually gains momentum.