In the latest close session, Morgan Stanley (MS) was up +1.42% at $135.90. The stock exceeded the S&P 500, which registered a gain of 1.11% for the day. Meanwhile, the Dow gained 1.19%, and the Nasdaq, a tech-heavy index, added 1.43%.
Prior to today's trading, shares of the investment bank had gained 6.29% outpaced the Finance sector's gain of 1.91% and the S&P 500's gain of 3.92%.
Market participants will be closely following the financial results of Morgan Stanley in its upcoming release. The company plans to announce its earnings on July 16, 2025. It is anticipated that the company will report an EPS of $2, marking a 9.89% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $15.97 billion, indicating a 6.36% growth compared to the corresponding quarter of the prior year.
MS's full-year Zacks Consensus Estimates are calling for earnings of $8.57 per share and revenue of $65.12 billion. These results would represent year-over-year changes of +7.8% and +5.43%, respectively.
It is also important to note the recent changes to analyst estimates for Morgan Stanley. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.1% lower. As of now, Morgan Stanley holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Morgan Stanley has a Forward P/E ratio of 15.64 right now. This valuation marks a premium compared to its industry average Forward P/E of 15.02.
Also, we should mention that MS has a PEG ratio of 1.22. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Financial - Investment Bank industry stood at 1.26 at the close of the market yesterday.
The Financial - Investment Bank industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 96, positioning it in the top 40% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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Morgan Stanley (MS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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