Yahoo Finance Morgan Stanley (MS) Outpaces Stock Market Gains: What You Should Know
Morgan Stanley (MS) closed the most recent trading day at $87.01, moving +1.9% from the previous trading session. This change outpaced the S&P 500's 1.76% gain on the day. Meanwhile, the Dow gained 1.17%, and the Nasdaq, a tech-heavy index, added 3.03%.
Prior to today's trading, shares of the investment bank had lost 15.31% over the past month. This has lagged the Finance sector's loss of 11.12% and the S&P 500's loss of 5.94% in that time.
Investors will be hoping for strength from Morgan Stanley as it approaches its next earnings release, which is expected to be April 19, 2023. The company is expected to report EPS of $1.76, down 14.56% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.13 billion, down 4.56% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.21 per share and revenue of $56.32 billion. These totals would mark changes of +13.36% and +4.95%, respectively, from last year.
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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.42% 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 11.84 right now. Its industry sports an average Forward P/E of 11.22, so we one might conclude that Morgan Stanley is trading at a premium comparatively.
It is also worth noting that MS currently has a PEG ratio of 1.48. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Financial - Investment Bank was holding an average PEG ratio of 0.96 at yesterday's closing price.
The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 105, putting it in the top 42% 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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Morgan Stanley (MS) : Free Stock Analysis Report
