In the latest market close, Morgan Stanley (MS) reached $125.20, with a +0.75% movement compared to the previous day. The stock exceeded the S&P 500, which registered a gain of 0.16% for the day. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq added 0.46%.
Coming into today, shares of the investment bank had lost 4.39% in the past month. In that same time, the Finance sector lost 0.19%, while the S&P 500 lost 3.59%.
Analysts and investors alike will be keeping a close eye on the performance of Morgan Stanley in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.30, signifying a 13.86% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.72 billion, up 10.48% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.56 per share and a revenue of $65.18 billion, signifying shifts of +7.67% and +5.53%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Morgan Stanley. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, 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 0.05% rise in the Zacks Consensus EPS estimate. As of now, Morgan Stanley holds a Zacks Rank of #3 (Hold).
In terms of valuation, Morgan Stanley is presently being traded at a Forward P/E ratio of 14.52. This expresses a discount compared to the average Forward P/E of 15.29 of its industry.
Meanwhile, MS's PEG ratio is currently 1.09. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Financial - Investment Bank industry was having an average PEG ratio of 1.09.
The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 36, which puts it in the top 15% 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.
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.
