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Morgan Stanley (MS) Surpasses Market Returns: Some Facts Worth Knowing

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Morgan Stanley (MS - Free Report) ended the recent trading session at $82.82, demonstrating a +0.66% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.39% for the day. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, added 0.2%.

The the stock of investment bank has risen by 9.23% in the past month, leading the Finance sector's gain of 7.81% and the S&P 500's gain of 5.28%.

Market participants will be closely following the financial results of Morgan Stanley in its upcoming release. The company plans to announce its earnings on January 16, 2024. In that report, analysts expect Morgan Stanley to post earnings of $1.23 per share. This would mark a year-over-year decline of 6.11%. At the same time, our most recent consensus estimate is projecting a revenue of $12.93 billion, reflecting a 1.41% rise from the equivalent quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.58 per share and a revenue of $54.1 billion, signifying shifts of -12.26% and +0.8%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for Morgan Stanley. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 has shifted 0.02% upward. Morgan Stanley is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Morgan Stanley is holding a Forward P/E ratio of 14.75. This indicates a discount in contrast to its industry's Forward P/E of 16.75.

Also, we should mention that MS has a PEG ratio of 2.4. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. MS's industry had an average PEG ratio of 1.5 as of yesterday's close.

The Financial - Investment Bank industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 215, finds itself in the bottom 15% echelons 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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