In the latest market close, Morgan Stanley (MS) reached $131.69, with a -1.97% movement compared to the previous day. This change lagged the S&P 500's daily loss of 1.71%. Elsewhere, the Dow saw a downswing of 1.7%, while the tech-heavy Nasdaq depreciated by 2.2%.
Shares of the investment bank witnessed a loss of 2.51% over the previous month, trailing the performance of the Finance sector with its gain of 2.23% and the S&P 500's gain of 2.2%.
The upcoming earnings release of Morgan Stanley will be of great interest to investors. The company is expected to report EPS of $2.23, up 10.4% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $16.66 billion, reflecting a 10.05% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.56 per share and a revenue of $65.32 billion, indicating changes of +7.67% and +5.77%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Morgan Stanley. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.72% upward. Morgan Stanley currently has a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Morgan Stanley is presently trading at a Forward P/E ratio of 15.7. For comparison, its industry has an average Forward P/E of 14.31, which means Morgan Stanley is trading at a premium to the group.
We can also see that MS currently has a PEG ratio of 1.18. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Financial - Investment Bank industry had an average PEG ratio of 1.12.
The Financial - Investment Bank industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 3, positioning it in the top 2% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
