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Morgan Stanley (MS) Registers a Bigger Fall Than the Market: Important Facts to Note

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Morgan Stanley (MS - Free Report) closed at $151.86 in the latest trading session, marking a -2.82% move from the prior day. The stock's change was less than the S&P 500's daily loss of 2.71%. Elsewhere, the Dow saw a downswing of 1.9%, while the tech-heavy Nasdaq depreciated by 3.56%.

The investment bank's stock has dropped by 0.13% in the past month, falling short of the Finance sector's gain of 0.28% and the S&P 500's gain of 3.5%.

The upcoming earnings release of Morgan Stanley will be of great interest to investors. The company's earnings report is expected on October 15, 2025. The company is forecasted to report an EPS of $2.07, showcasing a 10.11% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.4 billion, up 6.61% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $8.86 per share and revenue of $67.26 billion, which would represent changes of +11.45% and +8.91%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Morgan Stanley. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. Right now, Morgan Stanley possesses a Zacks Rank of #3 (Hold).

From a valuation perspective, Morgan Stanley is currently exchanging hands at a Forward P/E ratio of 17.63. This signifies a premium in comparison to the average Forward P/E of 16.58 for its industry.

We can also see that MS currently has a PEG ratio of 1.82. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Financial - Investment Bank industry was having an average PEG ratio of 1.47.

The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 14% of all 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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