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Morgan Stanley (MS) Stock Sinks As Market Gains: Here's Why

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Morgan Stanley (MS - Free Report) ended the recent trading session at $85.49, demonstrating a -0.21% swing from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.17%. Elsewhere, the Dow saw a downswing of 0.25%, while the tech-heavy Nasdaq appreciated by 0.37%.

The investment bank's stock has dropped by 2.23% in the past month, falling short of the Finance sector's gain of 2.44% and the S&P 500's gain of 3.8%.

The upcoming earnings release of Morgan Stanley will be of great interest to investors. The company's earnings report is expected on April 16, 2024. The company is forecasted to report an EPS of $1.72, showcasing a 1.18% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $14.51 billion, indicating a 0.06% decline compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.36 per share and a revenue of $56.83 billion, signifying shifts of +16.48% and +4.97%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for Morgan Stanley. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.25% lower. At present, Morgan Stanley boasts a Zacks Rank of #3 (Hold).

In terms of valuation, Morgan Stanley is presently being traded at a Forward P/E ratio of 13.46. This indicates a discount in contrast to its industry's Forward P/E of 16.9.

Investors should also note that MS has a PEG ratio of 1.73 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Financial - Investment Bank industry was having an average PEG ratio of 1.13.

The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 40, putting it in the top 16% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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

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