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Morgan Stanley (MS) Stock Drops Despite Market Gains: Important Facts to Note

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Morgan Stanley (MS - Free Report) closed at $158.96 in the latest trading session, marking a -1.37% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.41%. On the other hand, the Dow registered a gain of 0.18%, and the technology-centric Nasdaq increased by 0.31%.

Shares of the investment bank witnessed a gain of 7.1% over the previous month, beating the performance of the Finance sector with its gain of 1.64%, and the S&P 500's gain of 3.15%.

The investment community will be paying close attention to the earnings performance of Morgan Stanley in its upcoming release. The company is slated to reveal its earnings on October 15, 2025. On that day, Morgan Stanley is projected to report earnings of $2.03 per share, which would represent year-over-year growth of 7.98%. Alongside, our most recent consensus estimate is anticipating revenue of $16.25 billion, indicating a 5.63% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $8.86 per share and a revenue of $67.08 billion, demonstrating changes of +11.45% and +8.61%, respectively, from the preceding year.

It is also important to note the recent changes to analyst estimates for Morgan Stanley. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.54% rise in the Zacks Consensus EPS estimate. Morgan Stanley is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Morgan Stanley has a Forward P/E ratio of 18.18 right now. This represents a premium compared to its industry average Forward P/E of 17.23.

One should further note that MS currently holds a PEG ratio of 2. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Financial - Investment Bank stocks are, on average, holding a PEG ratio of 1.67 based on yesterday's closing prices.

The Financial - Investment Bank industry is part of the Finance sector. With its current Zacks Industry Rank of 28, this industry ranks in the top 12% of all industries, numbering over 250.

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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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