Back to top

Image: Bigstock

Morgan Stanley (MS) Stock Sinks As Market Gains: Here's Why

Read MoreHide Full Article

In the latest market close, Morgan Stanley (MS - Free Report) reached $104.09, with a -0.53% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.55%. Elsewhere, the Dow saw an upswing of 0.62%, while the tech-heavy Nasdaq appreciated by 0.63%.

Coming into today, shares of the investment bank had gained 9.9% in the past month. In that same time, the Finance sector lost 2.67%, while the S&P 500 gained 4.28%.

Analysts and investors alike will be keeping a close eye on the performance of Morgan Stanley in its upcoming earnings disclosure. The company's earnings report is set to go public on July 16, 2024. The company is predicted to post an EPS of $1.66, indicating a 33.87% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $14.23 billion, up 5.74% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.81 per share and a revenue of $57.77 billion, representing changes of +24.73% and +6.69%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Morgan Stanley. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, there's been a 0.35% fall in the Zacks Consensus EPS estimate. Morgan Stanley presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Morgan Stanley is presently being traded at a Forward P/E ratio of 15.37. This represents a discount compared to its industry's average Forward P/E of 17.23.

One should further note that MS currently holds a PEG ratio of 1.28. 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 1.06 as of yesterday's close.

The Financial - Investment Bank industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 89, finds itself in the top 36% echelons 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Morgan Stanley (MS) - free report >>

Published in