Morgan Stanley (MS) closed the most recent trading day at $82.19, moving +0.66% from the previous trading session. This change outpaced the S&P 500's 0.59% gain on the day. Meanwhile, the Dow gained 0.35%, and the Nasdaq, a tech-heavy index, added 0.83%.
Prior to today's trading, shares of the investment bank had lost 4.23% over the past month. This has lagged the Finance sector's loss of 1.79% and the S&P 500's loss of 2.84% in that time.
Morgan Stanley will be looking to display strength as it nears its next earnings release, which is expected to be October 18, 2023. The company is expected to report EPS of $1.40, down 8.5% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $13.34 billion, up 2.74% from the year-ago period.
MS's full-year Zacks Consensus Estimates are calling for earnings of $5.81 per share and revenue of $54.69 billion. These results would represent year-over-year changes of -8.65% and +1.91%, respectively.
Investors might also notice recent changes to analyst estimates for Morgan Stanley. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.41% lower within the past month. Morgan Stanley is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Morgan Stanley has a Forward P/E ratio of 14.05 right now. For comparison, its industry has an average Forward P/E of 16.8, which means Morgan Stanley is trading at a discount to the group.
Investors should also note that MS has a PEG ratio of 2.24 right now. 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. The Financial - Investment Bank industry currently had an average PEG ratio of 1.06 as of yesterday's close.
The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 98, putting it in the top 39% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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