Morgan Stanley (MS) closed at $168.79 in the latest trading session, marking a +1.19% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.77%. Meanwhile, the Dow experienced a rise of 0.76%, and the technology-dominated Nasdaq saw an increase of 1.05%.
The stock of investment bank has fallen by 8.29% in the past month, lagging the Finance sector's loss of 1.34% and the S&P 500's loss of 0.98%.
The investment community will be closely monitoring the performance of Morgan Stanley in its forthcoming earnings report. The company is scheduled to release its earnings on April 15, 2026. In that report, analysts expect Morgan Stanley to post earnings of $2.89 per share. This would mark year-over-year growth of 11.15%. Meanwhile, our latest consensus estimate is calling for revenue of $19.07 billion, up 7.52% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $11.09 per share and revenue of $74.89 billion, indicating changes of +8.62% and +6.01%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Morgan Stanley. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.14% increase. Currently, Morgan Stanley is carrying a Zacks Rank of #2 (Buy).
Looking at valuation, Morgan Stanley is presently trading at a Forward P/E ratio of 15.04. Its industry sports an average Forward P/E of 13.35, so one might conclude that Morgan Stanley is trading at a premium comparatively.
Meanwhile, MS's PEG ratio is currently 1.34. 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 1.1 as of yesterday's close.
The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 36, putting it in the top 15% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the 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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