Morgan Stanley (MS) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Morgan Stanley (MS) closed at $85.70, marking a -0.28% move from the previous day. This move lagged the S&P 500's daily gain of 0.51%.
Heading into today, shares of the investment bank had lost 4.18% over the past month, lagging the Finance sector's loss of 0.8% and the S&P 500's gain of 1.75% in that time.
Investors will be hoping for strength from MS as it approaches its next earnings release, which is expected to be July 15, 2021. On that day, MS is projected to report earnings of $1.66 per share, which would represent a year-over-year decline of 18.63%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.98 billion, up 4.23% from the year-ago period.
MS's full-year Zacks Consensus Estimates are calling for earnings of $7.05 per share and revenue of $55.84 billion. These results would represent year-over-year changes of +7.14% and +15.86%, respectively.
Investors might also notice recent changes to analyst estimates for MS. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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, the Zacks Consensus EPS estimate has moved 1.24% higher. MS is currently a Zacks Rank #2 (Buy).
In terms of valuation, MS is currently trading at a Forward P/E ratio of 12.2. This valuation marks a premium compared to its industry's average Forward P/E of 11.34.
Meanwhile, MS's PEG ratio is currently 1.81. 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 Financial - Investment Bank industry currently had an average PEG ratio of 1.22 as of yesterday's close.
The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 92, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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