Morgan Stanley (MS) closed the most recent trading day at $47.24, moving -1.64% from the previous trading session. This move lagged the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.46%, and the tech-heavy Nasdaq gained 0.17%.
Coming into today, shares of the investment bank had lost 11.09% in the past month. In that same time, the Finance sector lost 4.51%, while the S&P 500 lost 4.88%.
Wall Street will be looking for positivity from MS as it approaches its next earnings report date. The company is expected to report EPS of $1.49, up 12.03% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.86 billion, up 5.62% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.36 per share and revenue of $41.80 billion. These totals would mark changes of +7.63% and +0.93%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for MS. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. MS is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that MS has a Forward P/E ratio of 8.97 right now. This represents a discount compared to its industry's average Forward P/E of 10.99.
Also, we should mention that MS has a PEG ratio of 0.91. 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. MS's industry had an average PEG ratio of 1.07 as of yesterday's close.
The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 108, putting it in the top 43% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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