Morgan Stanley (MS) closed the most recent trading day at $184.79, moving -1.58% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.34%. At the same time, the Dow lost 0.94%, and the tech-heavy Nasdaq gained 0.16%.
The stock of investment bank has risen by 4.99% in the past month, leading the Finance sector's gain of 3.09% and the S&P 500's gain of 1.19%.
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 January 15, 2026. The company is expected to report EPS of $2.32, up 4.5% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $17.29 billion, indicating a 6.61% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.88 per share and revenue of $70.1 billion, indicating changes of +24.28% and 0%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Morgan Stanley. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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, there's been a 0.97% rise in the Zacks Consensus EPS estimate. Currently, Morgan Stanley is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Morgan Stanley is currently trading at a Forward P/E ratio of 18.01. For comparison, its industry has an average Forward P/E of 16.75, which means Morgan Stanley is trading at a premium to the group.
We can additionally observe that MS currently boasts a PEG ratio of 1.45. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. MS's industry had an average PEG ratio of 1.1 as of yesterday's close.
The Financial - Investment Bank industry is part of the Finance sector. With its current Zacks Industry Rank of 103, this industry ranks in the top 43% 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.
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
