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

In the latest trading session, Morgan Stanley (MS) closed at $82.06, marking a +1.57% move from the previous day. This move outpaced the S&P 500's daily loss of 1.31%. Meanwhile, the Dow lost 0.39%, and the Nasdaq, a tech-heavy index, lost 2.7%.

Prior to today's trading, shares of the investment bank had gained 13.87% over the past month. This has outpaced the Finance sector's gain of 6.16% and the S&P 500's gain of 1.32% 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 April 16, 2021. In that report, analysts expect MS to post earnings of $1.59 per share. This would mark year-over-year growth of 60.61%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.32 billion, up 29.84% from the year-ago period.

MS's full-year Zacks Consensus Estimates are calling for earnings of $5.74 per share and revenue of $48.02 billion. These results would represent year-over-year changes of -12.77% and -0.37%, respectively.

It is also important to note the recent changes to analyst estimates for MS. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 1.55% higher within the past month. MS is holding a Zacks Rank of #2 (Buy) right now.

Valuation is also important, so investors should note that MS has a Forward P/E ratio of 14.07 right now. This represents a premium compared to its industry's average Forward P/E of 13.09.

Meanwhile, MS's PEG ratio is currently 1.4. 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. MS's industry had an average PEG ratio of 1.4 as of yesterday's close.

The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 4, which puts it in the top 2% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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