Morgan Stanley (MS) closed the most recent trading day at $127.74, moving -1% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.39%. Meanwhile, the Dow experienced a drop of 0.61%, and the technology-dominated Nasdaq saw a decrease of 0.32%.
The investment bank's stock has dropped by 3.55% in the past month, falling short of the Finance sector's gain of 0.19% and the S&P 500's gain of 3.6%.
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 January 16, 2025. In that report, analysts expect Morgan Stanley to post earnings of $1.55 per share. This would mark year-over-year growth of 37.17%. Simultaneously, our latest consensus estimate expects the revenue to be $14.56 billion, showing a 12.87% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.33 per share and revenue of $60.08 billion, which would represent changes of +34.25% and +10.96%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Morgan Stanley. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.03% increase. At present, Morgan Stanley boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Morgan Stanley is presently being traded at a Forward P/E ratio of 17.61. Its industry sports an average Forward P/E of 17.23, so one might conclude that Morgan Stanley is trading at a premium comparatively.
Investors should also note that MS has a PEG ratio of 1.2 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Financial - Investment Bank industry had an average PEG ratio of 1.48 as trading concluded yesterday.
The Financial - Investment Bank industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 49, finds itself in the top 20% echelons 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Zacks Naming Top 10 Stocks for 2025
Want to be tipped off early to our 10 top picks for the entirety of 2025?
History suggests their performance could be sensational.
From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>Morgan Stanley (MS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
