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Earnings Preview: Morgan Stanley (MS) vs. Goldman Sachs (GS)

It has been a downright awful time to be in the financial sector, though most investors have been focused in on the banking side of the important business segment. However, those in the broker-dealer industry, like Goldman Sachs (GS) or Morgan Stanley (MS), have been under pressure too.

These two financial giants are actually both down more than 22% over the past year, though they have made some strides in recent trading sessions. Still, the space at large, represented by the ETF IAI, is down double digits from a one year look, so it has been pretty bleak all-around. Can either GS or MS break the trend?

Well, GS currently doesn’t have an earnings ESP while the stock has a Zacks Rank #3 (hold). It does, however, have a ‘D’ VGM score suggesting that fundamentals aren’t great for this name right now.

GOLDMAN SACHS Price and Consensus

GOLDMAN SACHS Price and Consensus | GOLDMAN SACHS Quote

Meanwhile, MS also is facing some big headwinds, while its shares also trade with a Zacks Rank #3 (hold). This stock has an even worse outlook for fundamentals as it has an ‘F’ VGM score include a ‘D’ grade for Value and an ‘F’ grade for Growth.

MORGAN STANLEY Price and Consensus

MORGAN STANLEY Price and Consensus | MORGAN STANLEY Quote

Bottom Line

Both of these stocks are struggling heading into the report and there are question marks for both. Make sure to watch the video for a more in-depth discussion, and highlights of which company may be better positioned to deliver a beat this earnings season.

And for more on how to trade earnings, make sure to listen to our podcast below:


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MORGAN STANLEY (MS): Free Stock Analysis Report
 
GOLDMAN SACHS (GS): Free Stock Analysis Report
 
ISHARS-US BR-D (IAI): ETF Research Reports
 
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Zacks Investment Research