Morgan Stanley (MS) closed at $148.02 in the latest trading session, marking a +2.76% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 1.52%. Meanwhile, the Dow experienced a rise of 1.89%, and the technology-dominated Nasdaq saw an increase of 1.88%.
Shares of the investment bank witnessed a gain of 1.08% over the previous month, trailing the performance of the Finance sector with its gain of 1.71%, and the S&P 500's gain of 1.1%.
The investment community will be paying close attention to the earnings performance of Morgan Stanley in its upcoming release. The company's upcoming EPS is projected at $2.02, signifying a 7.45% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $16.05 billion, showing a 4.33% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.82 per share and revenue of $66.86 billion, which would represent changes of +10.94% and +8.26%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Morgan Stanley. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.41% upward. Morgan Stanley presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Morgan Stanley is currently exchanging hands at a Forward P/E ratio of 16.34. This signifies a premium in comparison to the average Forward P/E of 16.27 for its industry.
One should further note that MS currently holds a PEG ratio of 1.8. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Financial – Investment Bank industry held an average PEG ratio of 1.52.
