In the latest trading session, Morgan Stanley (MS) closed at $203.83, marking a +1.1% move from the previous day. This move outpaced the S&P 500's daily gain of 0.58%. Meanwhile, the Dow experienced a rise of 0.05%, and the technology-dominated Nasdaq saw an increase of 0.91%.
The investment bank's stock has climbed by 7.77% in the past month, exceeding the Finance sector's gain of 1.37% and the S&P 500's gain of 4.96%.
The upcoming earnings release of Morgan Stanley will be of great interest to investors. On that day, Morgan Stanley is projected to report earnings of $2.71 per share, which would represent year-over-year growth of 27.23%. In the meantime, our current consensus estimate forecasts the revenue to be $18.71 billion, indicating a 11.41% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $11.85 per share and revenue of $77.17 billion, indicating changes of +16.06% and +9.23%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Morgan Stanley. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.13% decrease. Right now, Morgan Stanley possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Morgan Stanley is currently being traded at a Forward P/E ratio of 17.01. This indicates a premium in contrast to its industry's Forward P/E of 12.83.
Also, we should mention that MS has a PEG ratio of 1.51. 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. By the end of yesterday's trading, the Financial - Investment Bank industry had an average PEG ratio of 0.92.
The Financial - Investment Bank industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 107, positioning it in the top 44% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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This article originally published on Zacks Investment Research (zacks.com).