Morgan Stanley (MS) ended the last trading day at $100.56, down 0.13% from the previous trading session. The stock outperformed the S&P 500, which saw a daily loss of 0.89%. The Dow, meanwhile, saw a decline of 0.44% and the tech-dominated Nasdaq saw a decline of 1.67%.
The investment bank’s shares lost 1.26 percent in value over the past month, lagging behind the financial sector’s gain of 1.92 percent and the S&P 500’s gain of 2.17 percent.
Morgan Stanley’s upcoming earnings release will be of great interest to investors. The company is expected to report earnings per share of $1.64, representing growth of 18.84% from the corresponding quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.36 billion, up 8.21% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.03 per share and revenue of $58.86 billion, representing changes of +28.75% and +8.72%, respectively, from the prior year.
Investors should also pay attention to any recent revisions to analyst estimates for Morgan Stanley. These recent revisions often reflect changing dynamics in short-term business patterns. Consequently, upward revisions to estimates express analysts’ positive view of the company’s business and its ability to generate earnings.
Our research suggests that these estimate changes are directly related to future stock price movements. To capitalize on this, we have developed the Zacks Rank, a quantitative model that takes these estimate changes into account and provides a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record, with #1-ranked stocks delivering an average annual return of +25% since 1988. Over the past 30 days, the Zacks Consensus Earnings per share estimate has moved 0.37% higher. Currently, Morgan Stanley has a Zacks Rank of #3 (Hold).
From a valuation perspective, Morgan Stanley is currently trading at a P/E ratio of 14.33, which represents a discount to the industry average P/E ratio of 16.23.
Meanwhile, MS’s PEG ratio currently stands at 1.03. The PEG ratio is similar to the commonly used P/E ratio, but also takes into account the company’s expected earnings growth rate. As of the close of yesterday’s trading, the average PEG ratio for the Financials & Investment Banking industry was 1.1.
The Financial Services – Investment Banking industry is part of the Financials sector. The current Zacks Industry Rank of 140 puts this industry in the bottom 45% of all industries that include over 250 industries.
The Zacks Industry Rank evaluates the vitality of our specific industry groups by calculating the average Zacks Rank of the individual stocks included in the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
Follow all these and many more stock-moving metrics on Zacks.com.
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