Morgan Stanley (MS) closed the most recent trading day at $173.72, moving +2.74% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.3%. Meanwhile, the Dow experienced a rise of 0.86%, and the technology-dominated Nasdaq saw an increase of 0.17%.
Coming into today, shares of the investment bank had gained 3.1% in the past month. In that same time, the Finance sector gained 1.91%, while the S&P 500 lost 0.06%.
The investment community will be closely monitoring the performance of Morgan Stanley in its forthcoming earnings report. The company is predicted to post an EPS of $2.28, indicating a 2.7% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $17.07 billion, up 5.24% from the year-ago period.
MS's full-year Zacks Consensus Estimates are calling for earnings of $9.76 per share and revenue of $69.71 billion. These results would represent year-over-year changes of +22.77% and +12.87%, respectively.
Any recent changes to analyst estimates for Morgan Stanley should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 3.64% higher within the past month. Right now, Morgan Stanley possesses a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Morgan Stanley is holding a Forward P/E ratio of 17.32. This signifies a premium in comparison to the average Forward P/E of 16.68 for its industry.
We can also see that MS currently has a PEG ratio of 1.39. 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. As of the close of trade yesterday, the Financial - Investment Bank industry held an average PEG ratio of 1.08.
The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 27, which puts it in the top 11% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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
