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Morgan Stanley (MS) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Morgan Stanley (MS) closed at $85.64, marking a +1.73% move from the previous day. This move outpaced the S&P 500's daily gain of 0.89%. Elsewhere, the Dow gained 1.2%, while the tech-heavy Nasdaq lost 0.68%.

Heading into today, shares of the investment bank had lost 15.41% over the past month, lagging the Finance sector's loss of 11.27% and the S&P 500's loss of 3.9% 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 April 19, 2023. On that day, Morgan Stanley is projected to report earnings of $1.76 per share, which would represent a year-over-year decline of 14.56%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.13 billion, down 4.56% from the year-ago period.

MS's full-year Zacks Consensus Estimates are calling for earnings of $7.19 per share and revenue of $56.32 billion. These results would represent year-over-year changes of +13.05% and +4.95%, respectively.

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It is also important to note the recent changes to analyst estimates for Morgan Stanley. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% higher. Morgan Stanley is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Morgan Stanley has a Forward P/E ratio of 11.71 right now. For comparison, its industry has an average Forward P/E of 11.81, which means Morgan Stanley is trading at a discount to the group.

Meanwhile, MS's PEG ratio is currently 1.46. 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. The Financial - Investment Bank was holding an average PEG ratio of 0.93 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 156, which puts it in the bottom 39% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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Morgan Stanley (MS) : Free Stock Analysis Report

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Zacks Investment Research