Morgan Stanley (MS) closed at $87.14 in the latest trading session, marking a -1.55% move from the prior day. This change lagged the S&P 500's 0.94% loss on the day. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq lost 1.53%.
Coming into today, shares of the investment bank had gained 6.66% in the past month. In that same time, the Finance sector gained 2.54%, while the S&P 500 gained 1.85%.
Wall Street will be looking for positivity from Morgan Stanley as it approaches its next earnings report date. This is expected to be October 18, 2023. On that day, Morgan Stanley is projected to report earnings of $1.42 per share, which would represent a year-over-year decline of 7.19%. Our most recent consensus estimate is calling for quarterly revenue of $13.41 billion, up 3.24% from the year-ago period.
MS's full-year Zacks Consensus Estimates are calling for earnings of $5.83 per share and revenue of $54.78 billion. These results would represent year-over-year changes of -8.33% and +2.08%, respectively.
Investors might also notice recent changes to analyst estimates for Morgan Stanley. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 0.11% lower. Morgan Stanley currently has a Zacks Rank of #4 (Sell).
Looking at its valuation, Morgan Stanley is holding a Forward P/E ratio of 15.19. For comparison, its industry has an average Forward P/E of 17.8, which means Morgan Stanley is trading at a discount to the group.
Meanwhile, MS's PEG ratio is currently 2.43. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Financial - Investment Bank stocks are, on average, holding a PEG ratio of 1.12 based on yesterday's closing prices.
The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 151, which puts it in the bottom 41% 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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