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Morgan Stanley (MS) Surpasses Market Returns: Some Facts Worth Knowing

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In the latest trading session, Morgan Stanley (MS - Free Report) closed at $142.86, marking a +1.27% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.48%. At the same time, the Dow lost 0.02%, and the tech-heavy Nasdaq gained 0.94%.

The investment bank's shares have seen an increase of 9.63% over the last month, surpassing the Finance sector's gain of 3.5% and the S&P 500's gain of 5.13%.

Market participants will be closely following the financial results of Morgan Stanley in its upcoming release. The company plans to announce its earnings on July 16, 2025. In that report, analysts expect Morgan Stanley to post earnings of $1.96 per share. This would mark year-over-year growth of 7.69%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.89 billion, up 5.82% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.54 per share and revenue of $65.06 billion. These totals would mark changes of +7.42% and +5.34%, respectively, from last year.

Investors might also notice recent changes 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 business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 past month, the Zacks Consensus EPS estimate has moved 0.47% lower. Right now, Morgan Stanley possesses a Zacks Rank of #3 (Hold).

Digging into valuation, Morgan Stanley currently has a Forward P/E ratio of 16.52. Its industry sports an average Forward P/E of 16.24, so one might conclude that Morgan Stanley is trading at a premium comparatively.

Also, we should mention that MS has a PEG ratio of 1.29. 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 1.33 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 68, which puts it in the top 28% of all 250+ industries.

The Zacks Industry Rank is ordered 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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