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

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Morgan Stanley (MS - Free Report) closed the most recent trading day at $156.89, moving -1.3% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.34%. Elsewhere, the Dow gained 0.09%, while the tech-heavy Nasdaq added 0.42%.

Prior to today's trading, shares of the investment bank had gained 6.79% outpaced the Finance sector's gain of 1.52% and the S&P 500's gain of 3.54%.

Market participants will be closely following the financial results of Morgan Stanley in its upcoming release. The company plans to announce its earnings on October 15, 2025. The company's upcoming EPS is projected at $2.03, signifying a 7.98% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $16.25 billion, reflecting a 5.63% rise from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.86 per share and revenue of $67.08 billion, indicating changes of +11.45% and +8.61%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Morgan Stanley. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 0.54% higher. Morgan Stanley presently features a Zacks Rank of #3 (Hold).

Digging into valuation, Morgan Stanley currently has a Forward P/E ratio of 17.94. For comparison, its industry has an average Forward P/E of 17.08, which means Morgan Stanley is trading at a premium to the group.

Also, we should mention that MS has a PEG ratio of 1.98. 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. As of the close of trade yesterday, the Financial - Investment Bank industry held an average PEG ratio of 1.65.

The Financial - Investment Bank industry is part of the Finance sector. With its current Zacks Industry Rank of 29, this industry ranks in the top 12% of all industries, numbering over 250.

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.

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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