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Morgan Stanley (MS) Dips More Than Broader Markets: What You Should Know

Morgan Stanley (MS) closed the most recent trading day at $83.74, moving -0.72% from the previous trading session. This change lagged the S&P 500's 0.2% loss on the day. Elsewhere, the Dow lost 0.59%, while the tech-heavy Nasdaq lost 1.54%.

Prior to today's trading, shares of the investment bank had lost 0.62% over the past month. This has lagged the Finance sector's gain of 2.29% and the S&P 500's gain of 4.14% in that time.

Wall Street will be looking for positivity from Morgan Stanley as it approaches its next earnings report date. This 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%. Meanwhile, our latest consensus estimate is calling for revenue of $13.62 billion, up 3.75% from the prior-year quarter.

MS's full-year Zacks Consensus Estimates are calling for earnings of $6.50 per share and revenue of $55.03 billion. These results would represent year-over-year changes of +2.2% and +2.53%, respectively.

Investors should also note any recent changes to analyst estimates for Morgan Stanley. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.48% 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 12.98. For comparison, its industry has an average Forward P/E of 12.98, 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 1.8. 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 industry currently had an average PEG ratio of 0.86 as of yesterday's close.

The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 209, which puts it in the bottom 18% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow MS in the coming trading sessions, be sure to utilize

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