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Morgan Stanley (MS) Surpasses Market Returns: Some Facts Worth Knowing

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The most recent trading session ended with Morgan Stanley (MS - Free Report) standing at $93.66, reflecting a +0.88% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily gain of 0.14%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 0.16%.

Shares of the investment bank witnessed a gain of 20.76% over the previous month, beating the performance of the Finance sector with its gain of 7.7% and the S&P 500's gain of 4.89%.

The investment community will be paying close attention to the earnings performance of Morgan Stanley in its upcoming release. The company is slated to reveal its earnings on January 16, 2024. The company's earnings per share (EPS) are projected to be $1.16, reflecting a 11.45% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.85 billion, up 0.78% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.51 per share and revenue of $54.02 billion. These totals would mark changes of -13.36% and +0.65%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Morgan Stanley. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has moved 1.14% lower. Morgan Stanley is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Morgan Stanley currently has a Forward P/E ratio of 16.84. This expresses a discount compared to the average Forward P/E of 18.2 of its industry.

We can additionally observe that MS currently boasts a PEG ratio of 2.74. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Financial - Investment Bank industry held an average PEG ratio of 1.64.

The Financial - Investment Bank industry is part of the Finance sector. With its current Zacks Industry Rank of 200, this industry ranks in the bottom 21% of all industries, numbering over 250.

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.

To follow MS in the coming trading sessions, be sure to utilize Zacks.com.


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