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Morgan Stanley (MS) Dips More Than Broader Markets: What You Should Know

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Morgan Stanley (MS - Free Report) closed at $95.42 in the latest trading session, marking a -0.76% move from the prior day. This change lagged the S&P 500's daily loss of 0.72%. At the same time, the Dow lost 0.68%, and the tech-heavy Nasdaq lost 0.67%.

Prior to today's trading, shares of the investment bank had lost 3.69% over the past month. This has was narrower than the Finance sector's loss of 4.1% and the S&P 500's loss of 5.92% in that time.

Morgan Stanley will be looking to display strength as it nears its next earnings release, which is expected to be April 14, 2022. The company is expected to report EPS of $1.95, down 12.16% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $15.37 billion, down 2.24% from the year-ago period.

MS's full-year Zacks Consensus Estimates are calling for earnings of $7.70 per share and revenue of $59.42 billion. These results would represent year-over-year changes of -6.33% and -0.57%, respectively.

Investors might also notice recent changes to analyst estimates for Morgan Stanley. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 moved 2.26% higher. Morgan Stanley is currently a Zacks Rank #2 (Buy).

Digging into valuation, Morgan Stanley currently has a Forward P/E ratio of 12.49. This represents a premium compared to its industry's average Forward P/E of 10.89.

Investors should also note that MS has a PEG ratio of 2.21 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 was holding an average PEG ratio of 0.85 at yesterday's closing price.

The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 36, which puts it in the top 15% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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