Morgan Stanley (MS) closed at $148.02 in the latest trading session, marking a +2.76% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 1.52%. Meanwhile, the Dow experienced a rise of 1.89%, and the technology-dominated Nasdaq saw an increase of 1.88%.
Shares of the investment bank witnessed a gain of 1.08% over the previous month, trailing the performance of the Finance sector with its gain of 1.71%, and the S&P 500's gain of 1.1%.
The investment community will be paying close attention to the earnings performance of Morgan Stanley in its upcoming release. The company's upcoming EPS is projected at $2.02, signifying a 7.45% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $16.05 billion, showing a 4.33% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.82 per share and revenue of $66.86 billion, which would represent changes of +10.94% and +8.26%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Morgan Stanley. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
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.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.41% upward. Morgan Stanley presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Morgan Stanley is currently exchanging hands at a Forward P/E ratio of 16.34. This signifies a premium in comparison to the average Forward P/E of 16.27 for its industry.
One should further note that MS currently holds a PEG ratio of 1.8. 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. As of the close of trade yesterday, the Financial - Investment Bank industry held an average PEG ratio of 1.52.
The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 7, which puts it in the top 3% of all 250+ industries.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Morgan Stanley (MS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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