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Morgan Stanley (MS) Dips More Than Broader Market: What You Should Know

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In the latest close session, Morgan Stanley (MS - Free Report) was down 1.2% at $187.44. The stock's change was less than the S&P 500's daily loss of 0.47%. Meanwhile, the Dow experienced a rise of 0.1%, and the technology-dominated Nasdaq saw a decrease of 1.25%.

Coming into today, shares of the investment bank had lost 11.91% in the past month. In that same time, the Finance sector lost 5.13%, while the S&P 500 gained 1.15%.

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 October 14, 2026. The company's upcoming EPS is projected at $2.88, signifying a 2.86% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $19.71 billion, up 8.15% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.68 per share and revenue of $81.75 billion. These totals would mark changes of +24.19% and +15.72%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Morgan Stanley. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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, the Zacks Consensus EPS estimate has moved 1.09% lower. Right now, Morgan Stanley possesses a Zacks Rank of #3 (Hold).

Looking at valuation, Morgan Stanley is presently trading at a Forward P/E ratio of 14.96. This represents a premium compared to its industry average Forward P/E of 13.08.

Meanwhile, MS's PEG ratio is currently 1.26. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. MS's industry had an average PEG ratio of 0.86 as of yesterday's close.

The Financial - Investment Bank industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 43, positioning it in the top 18% 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.

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

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