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Morgan Stanley (MS) Stock Slides as Market Rises: Facts to Know Before You Trade

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In the latest trading session, Morgan Stanley (MS - Free Report) closed at $172.96, marking a -1.05% move from the previous day. This change lagged the S&P 500's 0.79% gain on the day. Meanwhile, the Dow experienced a rise of 0.14%, and the technology-dominated Nasdaq saw an increase of 1.38%.

The stock of investment bank has risen by 7.71% in the past month, leading the Finance sector's gain of 4.09% and the S&P 500's gain of 0.87%.

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 January 15, 2026. In that report, analysts expect Morgan Stanley to post earnings of $2.28 per share. This would mark year-over-year growth of 2.7%. Simultaneously, our latest consensus estimate expects the revenue to be $17.07 billion, showing a 5.24% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.76 per share and a revenue of $69.71 billion, signifying shifts of +22.77% and +12.87%, respectively, from the last 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. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.12% upward. At present, Morgan Stanley boasts a Zacks Rank of #1 (Strong Buy).

Investors should also note Morgan Stanley's current valuation metrics, including its Forward P/E ratio of 17.91. This denotes a premium relative to the industry average Forward P/E of 17.85.

One should further note that MS currently holds a PEG ratio of 1.44. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Financial - Investment Bank was holding an average PEG ratio of 1.07 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 29, which puts it in the top 12% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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