Morgan Stanley (MS - Free Report) closed at $96.62 in the latest trading session, marking a -1.59% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.45% for the day. On the other hand, the Dow registered a loss of 0.23%, and the technology-centric Nasdaq increased by 0.84%.
Shares of the investment bank have appreciated by 3.52% over the course of the past month, underperforming the Finance sector's gain of 4.51% and outperforming the S&P 500's gain of 2.54%.
The investment community will be paying close attention to the earnings performance of Morgan Stanley in its upcoming release. The company is slated to reveal its earnings on October 17, 2024. In that report, analysts expect Morgan Stanley to post earnings of $1.64 per share. This would mark year-over-year growth of 18.84%. Meanwhile, our latest consensus estimate is calling for revenue of $14.36 billion, up 8.21% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.03 per share and a revenue of $58.86 billion, signifying shifts of +28.75% and +8.72%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Morgan Stanley. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Morgan Stanley currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Morgan Stanley has a Forward P/E ratio of 13.97 right now. This represents a discount compared to its industry's average Forward P/E of 16.11.
One should further note that MS currently holds a PEG ratio of 1.01. 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 average PEG ratio for the Financial - Investment Bank industry stood at 1.11 at the close of the market yesterday.
The Financial - Investment Bank industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 96, positioning it in the top 38% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.
