Morgan Stanley (MS), Outpaces Stock Market Gains – What You Need to Know
Morgan Stanley (MS), closed its most recent trading day at $87.01, a move of +1.9% over the previous trading session. This change outpaced the S&P 500’s 1.76% gain on the day. The Dow gained 1.17% and the Nasdaq (a tech-heavy index) added 3.03%.
Before today’s trading, shares in the investment bank had lost 15.31% during the previous month. This has lagged the Finance sector’s loss of 11.12% and the S&P 500’s loss of 5.94% in that time.
As Morgan Stanley prepares for its next earnings release on April 19, 2023, investors will be hopeful that the company will show strength. The company will report an EPS of $1.76. This is 14.56% less than in the prior-year quarter. The Zacks Consensus estimate for revenue projects net sales of $13.13 billion, a decrease of 4.56% over the previous year.
Our Zacks Consensus estimates for the year show analysts expecting earnings to reach $7.21 per share, and revenue to reach $56.32 billion. These figures would show an increase of +13.36% versus +4.95% compared to last year.
Notable are the recent changes in analyst estimates for Morgan Stanley. These revisions reflect changes in short-term business trends. We can therefore interpret positive revisions in estimates as a positive sign about the company’s business outlook.
We found that these changes in estimate are directly correlated to stock prices. The Zacks Rank is a tool that investors can use to take advantage of this correlation. This model uses these estimate changes to provide a simple and actionable rating system.
The Zacks Rank system ranks stocks from #1 (Strong Sell) to #5 (“Strong Buy”) and has a track record of outperformance that is outside-audited. Since 1988, #1 stocks have averaged +25% annually. Over the past month the Zacks Consensus EPS estimates have moved 0.42% higher. Morgan Stanley is currently ranked #3 (Hold) by Zacks.
Important is the valuation of Morgan Stanley. Right now, Morgan Stanley’s Forward P/E ratio is 11.84. The industry has an average Forward PE ratio of 11.22. This might lead one to conclude that Morgan Stanley trades at a premium.
MS has a current PEG ratio 1.48. While the PEG ratio can be compared to the more popular P/E ratio this metric also includes the expected earnings growth rate of the company. At yesterday’s closing price, the Financial – Investment Bank had a PEG ratio average of 0.96.
Financial – Investment Bank is a part of the Finance industry. This group has a Zacks Industry Rank 105, which places it among the top 42% in all 250+ industries.
The Zacks Industry Rank gauges industry strength by measuring the average Zacks Rank for individual stocks within each group. Our research has shown that the top half of industries are rated higher than the bottom 50% by a factor 2 to 1.
Zacks.com has more information about all these metrics and many other topics.
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Morgan Stanley (MS) : Free Stock Analysis Report