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Morgan Stanley (MS) Laps the Stock Market: Here's Why

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In the latest trading session, Morgan Stanley (MS - Free Report) closed at $190.02, marking a +1.38% move from the previous day. This change outpaced the S&P 500's 0.6% gain on the day. Meanwhile, the Dow experienced a rise of 0.83%, and the technology-dominated Nasdaq saw an increase of 0.64%.

The stock of investment bank has fallen by 11.86% in the past month, lagging the Finance sector's loss of 3.99% and the S&P 500's gain of 1.34%.

The upcoming earnings release of Morgan Stanley will be of great interest to investors. The company's earnings report is expected on October 14, 2026. The company's upcoming EPS is projected at $2.83, signifying a 1.07% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $19.63 billion, reflecting a 7.72% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $12.66 per share and a revenue of $81.75 billion, demonstrating changes of +24% and +15.72%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Morgan Stanley. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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. Within the past 30 days, our consensus EPS projection has moved 1.25% lower. Morgan Stanley is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Morgan Stanley is holding a Forward P/E ratio of 14.8. This denotes a premium relative to the industry average Forward P/E of 13.08.

It is also worth noting that MS currently has a PEG ratio of 1.25. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Financial - Investment Bank stocks are, on average, holding a PEG ratio of 0.87 based on yesterday's closing prices.

The Financial - Investment Bank industry is part of the Finance sector. With its current Zacks Industry Rank of 54, this industry ranks in the top 22% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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