Morgan Stanley (MS - Free Report) closed the most recent trading day at $40.13, moving -0.42% from the previous trading session. This move lagged the S&P 500's daily gain of 0.24%. At the same time, the Dow lost 0.04%, and the tech-heavy Nasdaq gained 0.43%.
Investors will be hoping for strength from MS as it approaches its next earnings release. On that day, MS is projected to report earnings of $0.91 per share, which would represent a year-over-year decline of 26.02%. Meanwhile, our latest consensus estimate is calling for revenue of $9.54 billion, down 6.83% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.74 per share and revenue of $37.76 billion, which would represent changes of -24.9% and -8.83%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for MS. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.39% lower within the past month. MS currently has a Zacks Rank of #4 (Sell).
Digging into valuation, MS currently has a Forward P/E ratio of 10.77. This valuation marks a discount compared to its industry's average Forward P/E of 13.61.
Also, we should mention that MS has a PEG ratio of 1.12. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Financial - Investment Bank was holding an average PEG ratio of 1.34 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 150, which puts it in the bottom 41% 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.