Morgan Stanley (MS) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Morgan Stanley (MS) closed at $84.64, marking a +0.82% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.17%. Elsewhere, the Dow gained 0.6%, while the tech-heavy Nasdaq added 0.67%.
Coming into today, shares of the investment bank had lost 14.07% in the past month. In that same time, the Finance sector lost 8.6%, while the S&P 500 gained 0.25%.
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 $1.72 per share, which would represent a year-over-year decline of 16.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.09 billion, down 4.79% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.10 per share and revenue of $56.23 billion. These totals would mark changes of +11.64% and +4.77%, respectively, from last year.
Any recent changes to analyst estimates for Morgan Stanley should also be noted by investors. Recent revisions tend to reflect the latest 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.15% lower. 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 11.82. This represents a premium compared to its industry's average Forward P/E of 11.78.
It is also worth noting that MS currently has a PEG ratio of 1.48. 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 0.97 based on yesterday's closing prices.
The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% 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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