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The latest trading session saw Morgan Stanley (MS) ending at $126.88, denoting a -1.37% adjustment from its last day's close. The stock's change was less than the S&P 500's daily loss of 1.11%. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, lost 1.89%.
Coming into today, shares of the investment bank had gained 0.05% in the past month. In that same time, the Finance sector lost 3.95%, while the S&P 500 lost 1.7%.
Market participants will be closely following the financial results of Morgan Stanley in its upcoming release. The company plans to announce its earnings on January 16, 2025. The company is expected to report EPS of $1.58, up 39.82% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $14.68 billion, up 13.84% from the prior-year quarter.
It's also important for investors to be aware of any recent modifications to analyst estimates for Morgan Stanley. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.26% increase. Morgan Stanley is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Morgan Stanley is presently trading at a Forward P/E ratio of 16.27. This indicates a premium in contrast to its industry's Forward P/E of 14.69.
Investors should also note that MS has a PEG ratio of 1.08 right now. 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. By the end of yesterday's trading, the Financial - Investment Bank industry had an average PEG ratio of 1.28.
The Financial - Investment Bank industry is part of the Finance sector. With its current Zacks Industry Rank of 34, this industry ranks in the top 14% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.