Morgan Stanley (MS) closed at $81.22 in the latest trading session, marking a -1.72% move from the prior day. This change lagged the S&P 500's 0.73% loss on the day. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq lost 7.92%.
Coming into today, shares of the investment bank had lost 6.15% in the past month. In that same time, the Finance sector lost 1.75%, while the S&P 500 gained 0.5%.
Investors will be hoping for strength from Morgan Stanley as it approaches its next earnings release, which is expected to be July 18, 2023. In that report, analysts expect Morgan Stanley to post earnings of $1.60 per share. This would mark year-over-year growth of 11.11%. Our most recent consensus estimate is calling for quarterly revenue of $13.62 billion, up 3.75% from the year-ago period.
MS's full-year Zacks Consensus Estimates are calling for earnings of $6.53 per share and revenue of $55.03 billion. These results would represent year-over-year changes of +2.67% and +2.53%, respectively.
Investors might also notice recent changes to analyst estimates for Morgan Stanley. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.15% lower. Morgan Stanley is currently sporting a Zacks Rank of #4 (Sell).
Investors should also note Morgan Stanley's current valuation metrics, including its Forward P/E ratio of 12.65. For comparison, its industry has an average Forward P/E of 12.65, which means Morgan Stanley is trading at a no noticeable deviation to the group.
We can also see that MS currently has a PEG ratio of 1.76. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Financial - Investment Bank was holding an average PEG ratio of 0.86 at yesterday's closing price.
The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 219, putting it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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