Morgan Stanley (MS) Outpaces Stock Market Gains: What You Should Know
Morgan Stanley (MS) closed the most recent trading day at $84.87, moving +0.89% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.31%. Meanwhile, the Dow gained 0.05%, and the Nasdaq, a tech-heavy index, added 0.14%.
Heading into today, shares of the investment bank had lost 0.13% over the past month, outpacing the Finance sector's loss of 0.4% and the S&P 500's loss of 1.38% in that time.
Investors will be hoping for strength from Morgan Stanley as it approaches its next earnings release, which is expected to be July 14, 2022. In that report, analysts expect Morgan Stanley to post earnings of $1.69 per share. This would mark a year-over-year decline of 10.58%. Our most recent consensus estimate is calling for quarterly revenue of $14.18 billion, down 3.92% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.31 per share and revenue of $57.66 billion, which would represent changes of -11.07% and -3.51%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Morgan Stanley. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.9% lower. Morgan Stanley currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Morgan Stanley is currently trading at a Forward P/E ratio of 11.5. Its industry sports an average Forward P/E of 11.5, so we one might conclude that Morgan Stanley is trading at a no noticeable deviation comparatively.
It is also worth noting that MS currently has a PEG ratio of 1.44. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Financial - Investment Bank stocks are, on average, holding a PEG ratio of 0.8 based on yesterday's closing prices.
The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 229, which puts it in the bottom 10% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MS in the coming trading sessions, be sure to utilize Zacks.com.
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