Morgan Stanley (MS) Beats Market Returns: Some Facts to Consider

At the last market close, Morgan Stanley (MS) reached $97.80, with a movement of +0.72% from the previous day. This move outpaced the S&P 500’s 0.09% gain on the day. Elsewhere, the Dow lost 0.1%, while the tech-heavy Nasdaq added 0.16%.

Coming into today, shares of the investment bank had lost 1.89% over the past month. At the same time, the financial sector gained 0.26%, while the S&P 500 gained 2.83%.

Investors will be eagerly watching Morgan Stanley’s performance when it next releases its earnings. The company’s earnings report is expected to be revealed on July 16, 2024. The company’s next EPS is forecast at $1.65, representing an increase of 33.06% from the same quarter of the previous year . Meanwhile, the latest consensus estimate calls for revenue to come in at $14.23 billion, an increase of 5.73% from the same quarter a year ago.

For the full year, the Zacks Consensus Estimate is earnings of $6.82 per share and revenue of $57.78 billion, showing changes of +24.91% and +6.72 %, respectively, compared to the previous year.

Additionally, investors would benefit from monitoring any recent changes in analyst projections for Morgan Stanley. These latter adjustments often reflect the changing dynamics of short-term business models. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Our research suggests that these estimate changes have a direct correlation to future stock price movements. To take advantage of this situation, we have developed the Zacks Rank, a unique model that incorporates these estimate changes and provides a convenient rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has a remarkable, third-party audited track record of outperformance, with #1 ranked stocks producing annual returns. average of +25%. since 1988. The Zacks Consensus EPS estimate has moved 0.18% lower over the past month. Currently, Morgan Stanley holds a Zacks Rank of #3 (Hold).

From a valuation perspective, Morgan Stanley is currently trading hands at a forward P/E ratio of 14.24. This denotes a discount to the industry’s average forward P/E of 18.19.

Investors should also note that MS currently has a PEG ratio of 1.19. The PEG ratio is similar to the widely used P/E ratio, but this metric also takes into account the company’s expected earnings growth rate. As of market close yesterday, the Finance & Investment Banking sector had an average PEG ratio of 1.15.

The Finance – Investment Banking sector is part of the Finance sector. Currently, this industry sports a Zacks Rank of 28, putting it in the top 12% of over 250 industries.

The Zacks Industry Rank is ranked from best to worst in terms of the average Zacks Rank of the individual companies within each of these industries. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to follow all of these stock action metrics and more in upcoming trading sessions.

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