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Morgan Stanley (MS) Gains As Market Dips: What You Should Know

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Morgan Stanley (MS - Free Report) closed at $103.42 in the latest trading session, marking a +1.71% move from the prior day. This change outpaced the S&P 500's 0.1% loss on the day. Meanwhile, the Dow lost 0.47%, and the Nasdaq, a tech-heavy index, lost 0.47%.

Heading into today, shares of the investment bank had gained 0.42% over the past month, lagging the Finance sector's gain of 5.04% and the S&P 500's gain of 3.67% in that time.

Morgan Stanley will be looking to display strength as it nears its next earnings release, which is expected to be January 19, 2022. The company is expected to report EPS of $1.96, up 2.08% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $14.76 billion, up 8.19% from the year-ago period.

Any recent changes to analyst estimates for Morgan Stanley should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 0.12% higher. Morgan Stanley is holding a Zacks Rank of #2 (Buy) right now.

Valuation is also important, so investors should note that Morgan Stanley has a Forward P/E ratio of 13.74 right now. Its industry sports an average Forward P/E of 12.63, so we one might conclude that Morgan Stanley is trading at a premium comparatively.

Investors should also note that MS has a PEG ratio of 1.95 right now. 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 industry currently had an average PEG ratio of 0.93 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 28, which puts it in the top 11% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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