In the latest trading session, Morgan Stanley (MS) closed at $51.15, marking a +1.59% move from the previous day. This change outpaced the S&P 500's 1.27% gain on the day. Elsewhere, the Dow gained 1.18%, while the tech-heavy Nasdaq added 1.87%.
Heading into today, shares of the investment bank had lost 3.51% over the past month, lagging the Finance sector's loss of 1.96% and the S&P 500's gain of 0.37% in that time.
Investors will be hoping for strength from MS as it approaches its next earnings release. On that day, MS is projected to report earnings of $1.10 per share, which would represent a year-over-year decline of 9.09%. Meanwhile, our latest consensus estimate is calling for revenue of $9.74 billion, down 2.87% from the prior-year quarter.
MS's full-year Zacks Consensus Estimates are calling for earnings of $5.05 per share and revenue of $42.38 billion. These results would represent year-over-year changes of +1.41% and +2.31%, respectively.
Any recent changes to analyst estimates for MS should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 remained stagnant. MS is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that MS has a Forward P/E ratio of 9.97 right now. This represents a discount compared to its industry's average Forward P/E of 13.51.
It is also worth noting that MS currently has a PEG ratio of 1.04. 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. The Financial - Investment Bank industry currently had an average PEG ratio of 1.03 as of yesterday's close.
The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 20% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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