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Morgan Stanley (MS) Gains As Market Dips: What You Should Know

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In the latest trading session, Morgan Stanley (MS - Free Report) closed at $77.40, marking a +1.84% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.77%. Elsewhere, the Dow gained 0.09%, while the tech-heavy Nasdaq lost 2.46%.

Coming into today, shares of the investment bank had gained 1.74% in the past month. In that same time, the Finance sector gained 4.34%, while the S&P 500 gained 3.02%.

Investors will be hoping for strength from MS as it approaches its next earnings release, which is expected to be April 16, 2021. The company is expected to report EPS of $1.59, up 60.61% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $12.32 billion, up 29.84% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.69 per share and revenue of $48.02 billion. These totals would mark changes of -13.53% and -0.37%, respectively, from last year.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 6.98% higher. MS is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, MS is holding a Forward P/E ratio of 13.35. Its industry sports an average Forward P/E of 13.35, so we one might conclude that MS is trading at a no noticeable deviation comparatively.

It is also worth noting that MS currently has a PEG ratio of 1.33. 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 was holding an average PEG ratio of 1.8 at yesterday's closing price.

The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 3, putting it in the top 2% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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