Morgan Stanley (MS) closed at $162.83 in the latest trading session, marking a +2.95% move from the prior day. The stock's change was more than the S&P 500's daily gain of 1.55%. Meanwhile, the Dow gained 0.44%, and the Nasdaq, a tech-heavy index, added 2.69%.
Coming into today, shares of the investment bank had lost 3.47% in the past month. In that same time, the Finance sector lost 0.98%, while the S&P 500 lost 1.8%.
Investors will be eagerly watching for the performance of Morgan Stanley in its upcoming earnings disclosure. On that day, Morgan Stanley is projected to report earnings of $2.28 per share, which would represent year-over-year growth of 2.7%. Alongside, our most recent consensus estimate is anticipating revenue of $17.07 billion, indicating a 5.24% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.76 per share and revenue of $69.71 billion. These totals would mark changes of +22.77% and +12.87%, respectively, from last year.
Any recent changes to analyst estimates for Morgan Stanley should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 3.64% upward. Currently, Morgan Stanley is carrying a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Morgan Stanley currently has a Forward P/E ratio of 16.2. This indicates a premium in contrast to its industry's Forward P/E of 15.84.
It is also worth noting that MS currently has a PEG ratio of 1.3. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Financial - Investment Bank stocks are, on average, holding a PEG ratio of 1.05 based on yesterday's closing prices.
The Financial - Investment Bank industry is part of the Finance sector. With its current Zacks Industry Rank of 22, this industry ranks in the top 9% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Morgan Stanley (MS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
