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Morgan Stanley (MS) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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Morgan Stanley (MS - Free Report) ended the recent trading session at $127.51, demonstrating a -1.32% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.56% for the day. Elsewhere, the Dow lost 0.58%, while the tech-heavy Nasdaq lost 0.51%.

The the stock of investment bank has risen by 11.19% in the past month, leading the Finance sector's gain of 5.39% and the S&P 500's gain of 7.37%.

Investors will be eagerly watching for the performance of Morgan Stanley in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.01, marking a 10.44% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $16.01 billion, up 6.6% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.58 per share and a revenue of $65.1 billion, indicating changes of +7.92% and +5.41%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for Morgan Stanley. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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. Within the past 30 days, our consensus EPS projection has moved 0.33% lower. Currently, Morgan Stanley is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Morgan Stanley is currently trading at a Forward P/E ratio of 15.06. This valuation marks no noticeable deviation compared to its industry's average Forward P/E of 15.06.

It is also worth noting that MS currently has a PEG ratio of 1.18. 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. MS's industry had an average PEG ratio of 1.21 as of yesterday's close.

The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 195, putting it in the bottom 22% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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