Morgan Stanley (MS) closed at $93 in the latest trading session, marking a -0.08% move from the prior day. This change was narrower than the S&P 500's daily loss of 0.09%. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq added 0.22%.
Prior to today's trading, shares of the investment bank had gained 10.31% over the past month. This has outpaced the Finance sector's gain of 6.59% and the S&P 500's gain of 5.55% in that time.
Investors will be hoping for strength from Morgan Stanley as it approaches its next earnings release, which is expected to be January 17, 2023. The company is expected to report EPS of $1.43, down 31.25% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $12.36 billion, down 14.87% from the year-ago period.
MS's full-year Zacks Consensus Estimates are calling for earnings of $6.43 per share and revenue of $53.26 billion. These results would represent year-over-year changes of -21.78% and -10.87%, respectively.
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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.31% lower. 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 14.48 right now. This valuation marks a discount compared to its industry's average Forward P/E of 15.16.
It is also worth noting that MS currently has a PEG ratio of 2.41. 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 industry currently had an average PEG ratio of 1.12 as of yesterday's close.
The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 72, putting it in the top 29% 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.
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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