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Morgan Stanley (MS) Ascends While Market Falls: Some Facts to Note

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The most recent trading session ended with Morgan Stanley (MS - Free Report) standing at $126.16, reflecting a +0.68% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.04% loss on the day.

Shares of the investment bank witnessed a gain of 11.57% over the previous month, beating the performance of the Finance sector with its gain of 9.28% and underperforming the S&P 500's gain of 13.42%.

The upcoming earnings release of Morgan Stanley will be of great interest to investors. On that day, Morgan Stanley is projected to report earnings of $2.01 per share, which would represent year-over-year growth of 10.44%. Our most recent consensus estimate is calling for quarterly revenue of $16.01 billion, up 6.6% from the year-ago period.

MS's full-year Zacks Consensus Estimates are calling for earnings of $8.58 per share and revenue of $65.1 billion. These results would represent year-over-year changes of +7.92% and +5.41%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for Morgan Stanley. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.33% lower. Morgan Stanley is currently a Zacks Rank #3 (Hold).

From a valuation perspective, Morgan Stanley is currently exchanging hands at a Forward P/E ratio of 14.61. This represents no noticeable deviation compared to its industry's average Forward P/E of 14.61.

It is also worth noting that MS currently has a PEG ratio of 1.14. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Financial - Investment Bank industry stood at 1.2 at the close of the market yesterday.

The Financial - Investment Bank industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 195, placing it within the bottom 22% of over 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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