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Morgan Stanley (MS) Stock Sinks As Market Gains: Here's Why
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Morgan Stanley (MS - Free Report) closed at $98.67 in the latest trading session, marking a -0.3% move from the prior day. This move lagged the S&P 500's daily gain of 0.03%. Meanwhile, the Dow experienced a drop of 0.56%, and the technology-dominated Nasdaq saw an increase of 0.59%.
The investment bank's shares have seen an increase of 7.45% over the last month, surpassing the Finance sector's gain of 2.95% and the S&P 500's gain of 4.19%.
Investors will be eagerly watching for the performance of Morgan Stanley in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.66, marking a 33.87% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $14.28 billion, showing a 6.09% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $6.83 per share and a revenue of $57.84 billion, demonstrating changes of +25.09% and +6.82%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Morgan Stanley. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.99% higher within the past month. Morgan Stanley currently has a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Morgan Stanley is presently trading at a Forward P/E ratio of 14.48. This valuation marks a discount compared to its industry's average Forward P/E of 18.22.
We can also see that MS currently has a PEG ratio of 1.21. 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 1.13 as of yesterday's close.
The Financial - Investment Bank industry is part of the Finance sector. With its current Zacks Industry Rank of 11, this industry ranks in the top 5% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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Morgan Stanley (MS) Stock Sinks As Market Gains: Here's Why
Morgan Stanley (MS - Free Report) closed at $98.67 in the latest trading session, marking a -0.3% move from the prior day. This move lagged the S&P 500's daily gain of 0.03%. Meanwhile, the Dow experienced a drop of 0.56%, and the technology-dominated Nasdaq saw an increase of 0.59%.
The investment bank's shares have seen an increase of 7.45% over the last month, surpassing the Finance sector's gain of 2.95% and the S&P 500's gain of 4.19%.
Investors will be eagerly watching for the performance of Morgan Stanley in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.66, marking a 33.87% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $14.28 billion, showing a 6.09% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $6.83 per share and a revenue of $57.84 billion, demonstrating changes of +25.09% and +6.82%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Morgan Stanley. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.99% higher within the past month. Morgan Stanley currently has a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Morgan Stanley is presently trading at a Forward P/E ratio of 14.48. This valuation marks a discount compared to its industry's average Forward P/E of 18.22.
We can also see that MS currently has a PEG ratio of 1.21. 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 1.13 as of yesterday's close.
The Financial - Investment Bank industry is part of the Finance sector. With its current Zacks Industry Rank of 11, this industry ranks in the top 5% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.