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Morgan Stanley (MS) Stock Dips While Market Gains: Key Facts

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The latest trading session saw Morgan Stanley (MS - Free Report) ending at $76.88, denoting a -1.37% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.1% for the day. On the other hand, the Dow registered a gain of 0.24%, and the technology-centric Nasdaq increased by 0.29%.

Coming into today, shares of the investment bank had gained 10.43% in the past month. In that same time, the Finance sector gained 10.97%, while the S&P 500 gained 10.68%.

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. It is anticipated that the company will report an EPS of $1.23, marking a 6.11% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.93 billion, up 1.41% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.58 per share and a revenue of $54.1 billion, indicating changes of -12.26% and +0.8%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Morgan Stanley. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.02% rise in the Zacks Consensus EPS estimate. Morgan Stanley is holding a Zacks Rank of #3 (Hold) right now.

In the context of valuation, Morgan Stanley is at present trading with a Forward P/E ratio of 13.98. This expresses a discount compared to the average Forward P/E of 16.32 of its industry.

It's also important to note that MS currently trades at a PEG ratio of 2.28. 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. As the market closed yesterday, the Financial - Investment Bank industry was having an average PEG ratio of 1.45.

The Financial - Investment Bank industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 198, positioning it in the bottom 22% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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