Morgan Stanley (MS) closed the most recent trading day at $90.91, moving +1.09% from the previous trading session. This change outpaced the S&P 500's 0.03% loss on the day. At the same time, the Dow added 0.45%, and the tech-heavy Nasdaq lost 0.05%.
Heading into today, shares of the investment bank had gained 11.45% over the past month, outpacing the Finance sector's gain of 8.94% and the S&P 500's gain of 6.23% in that time.
Morgan Stanley will be looking to display strength as it nears its next earnings release. On that day, Morgan Stanley is projected to report earnings of $1.44 per share, which would represent a year-over-year decline of 30.77%. Meanwhile, our latest consensus estimate is calling for revenue of $12.48 billion, down 14.07% from the prior-year quarter.
MS's full-year Zacks Consensus Estimates are calling for earnings of $6.45 per share and revenue of $53.38 billion. These results would represent year-over-year changes of -21.53% and -10.68%, 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. 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.
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. The Zacks Consensus EPS estimate has moved 0.74% lower within the past month. Morgan Stanley is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Morgan Stanley's current valuation metrics, including its Forward P/E ratio of 13.95. This represents a discount compared to its industry's average Forward P/E of 14.02.
It is also worth noting that MS currently has a PEG ratio of 2.32. 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 1.1 at yesterday's closing price.
The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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