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Morgan Stanley (MS) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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In the latest trading session, Morgan Stanley (MS - Free Report) closed at $206.66, marking a -1.71% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 1.62%. At the same time, the Dow lost 1.87%, and the tech-heavy Nasdaq lost 1.98%.

The stock of investment bank has risen by 9.57% in the past month, leading the Finance sector's gain of 0.94% and the S&P 500's loss of 0.03%.

The investment community will be closely monitoring the performance of Morgan Stanley in its forthcoming earnings report. The company is scheduled to release its earnings on July 15, 2026. It is anticipated that the company will report an EPS of $2.71, marking a 27.23% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $18.71 billion, indicating a 11.41% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $11.85 per share and revenue of $77.17 billion, which would represent changes of +16.06% and +9.23%, respectively, from the prior 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 shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.07% upward. Morgan Stanley is currently sporting a Zacks Rank of #2 (Buy).

With respect to valuation, Morgan Stanley is currently being traded at a Forward P/E ratio of 17.74. This signifies a premium in comparison to the average Forward P/E of 13.96 for its industry.

One should further note that MS currently holds a PEG ratio of 1.58. 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 1.06 based on yesterday's closing prices.

The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 37% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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