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Morgan Stanley (MS) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Morgan Stanley (MS) closed at $102.91, marking a -0.62% move from the previous day. This move lagged the S&P 500's daily gain of 0.15%.

Heading into today, shares of the investment bank had lost 0.28% over the past month, lagging the Finance sector's loss of 0.15% and outpacing the S&P 500's loss of 0.58% in that time.

Wall Street will be looking for positivity from MS as it approaches its next earnings report date. This is expected to be October 14, 2021. In that report, analysts expect MS to post earnings of $1.60 per share. This would mark year-over-year growth of 0.63%. Our most recent consensus estimate is calling for quarterly revenue of $13.46 billion, up 15.47% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.50 per share and revenue of $57.44 billion. These totals would mark changes of +13.98% and +19.18%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for MS. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 0.54% higher within the past month. MS is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, MS is currently trading at a Forward P/E ratio of 13.81. This represents a premium compared to its industry's average Forward P/E of 10.78.

Meanwhile, MS's PEG ratio is currently 2.19. 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. The Financial - Investment Bank industry currently had an average PEG ratio of 0.65 as of yesterday's close.

The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 99, putting it in the top 39% of all 250+ industries.

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.

To follow MS in the coming trading sessions, be sure to utilize Zacks.com.


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