Morgan Stanley (MS) Stock Sinks As Market Gains: What You Should Know
Morgan Stanley (MS) closed the most recent trading day at $87.70, moving -0.79% from the previous trading session. This change lagged the S&P 500's daily gain of 0.23%.
Prior to today's trading, shares of the investment bank had lost 2.8% over the past month. This has lagged the Finance sector's gain of 0.95% and the S&P 500's gain of 2.34% in that time.
MS will be looking to display strength as it nears its next earnings release, which is expected to be July 15, 2021. On that day, MS is projected to report earnings of $1.66 per share, which would represent a year-over-year decline of 18.63%. Meanwhile, our latest consensus estimate is calling for revenue of $13.98 billion, up 4.23% from the prior-year quarter.
MS's full-year Zacks Consensus Estimates are calling for earnings of $7.05 per share and revenue of $55.84 billion. These results would represent year-over-year changes of +7.14% and +15.86%, respectively.
It is also important to note the recent changes to analyst estimates for MS. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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 1.24% higher within the past month. MS is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, MS is holding a Forward P/E ratio of 12.55. Its industry sports an average Forward P/E of 11.94, so we one might conclude that MS is trading at a premium comparatively.
Investors should also note that MS has a PEG ratio of 1.86 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Financial - Investment Bank industry currently had an average PEG ratio of 1.28 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 127, which puts it in the top 50% 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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