Goldman Sachs (GS. N) is worth more than its longtime Wall Street rival Morgan Stanley (MS. N) for the first time since the outbreak of the epidemic. Goldman's shares rose 2.6 percent on Tuesday, taking its market capitalization to $168.90 billion, narrowly surpassing Morgan Stanley's $168.60 billion market capitalization. It is a rapid increase for Goldman, whose market capitalization diverged by more than $20 billion at the start of the year. "Given the potential for a positive earnings-per-share correction and a long-term rerating, Goldman's shares are among the best risk/reward stocks in our area of focus," said Ebrahim Poonawala, global research analyst at Bank of America. Goldman's shares have rallied 31 percent this year to a record high, buoyed by strong trading income and banking fees. Morgan Stanley's share price rose by just 11% in 2024, lagging behind its largest peer and the overall market as its wealth management business underperformed.