In the latest trading session, Morgan Stanley (MS) closed at $79.86, marking a -1.98% move from the previous day. This move was narrower than the S&P 500's daily loss of 2.11%. At the same time, the Dow lost 1.54%, and the tech-heavy Nasdaq lost 0.3%.
Coming into today, shares of the investment bank had lost 4.4% in the past month. In that same time, the Finance sector lost 8.04%, while the S&P 500 lost 8.19%.
Morgan Stanley will be looking to display strength as it nears its next earnings release, which is expected to be October 14, 2022. On that day, Morgan Stanley is projected to report earnings of $1.54 per share, which would represent a year-over-year decline of 24.51%. Our most recent consensus estimate is calling for quarterly revenue of $13.3 billion, down 9.82% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.69 per share and revenue of $54.4 billion. These totals would mark changes of -18.61% and -8.97%, respectively, from last year.
Any recent changes to analyst estimates for Morgan Stanley should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Morgan Stanley currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Morgan Stanley has a Forward P/E ratio of 12.18 right now. Its industry sports an average Forward P/E of 12.4, so we one might conclude that Morgan Stanley is trading at a discount comparatively.
It is also worth noting that MS currently has a PEG ratio of 1.52. 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 industry currently had an average PEG ratio of 0.92 as of yesterday's close.
The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 166, which puts it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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