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Morgan Stanley (MS) Dips More Than Broader Markets: What You Should Know

In the latest trading session, Morgan Stanley (MS) closed at $103.57, marking a -0.59% move from the previous day.

This story originally appeared on Zacks

Morgan Stanley (MS) closed at $103.57 in the latest trading session, marking a -0.59% move from the prior day. This move lagged the S&P 500's daily loss of 0.13%.

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Coming into today, shares of the investment bank had gained 2.1% in the past month. In that same time, the Finance sector gained 0.69%, while the S&P 500 gained 2.07%.

Investors will be hoping for strength from MS as it approaches its next earnings release. In that report, analysts expect MS to post earnings of $1.60 per share. This would mark year-over-year growth of 0.63%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.46 billion, up 15.47% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.46 per share and revenue of $57.44 billion. These totals would mark changes of +13.37% and +19.18%, respectively, from last year.

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. 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.48% higher. MS currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that MS has a Forward P/E ratio of 13.97 right now. Its industry sports an average Forward P/E of 10.82, so we one might conclude that MS is trading at a premium comparatively.

It is also worth noting that MS currently has a PEG ratio of 2.21. 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 0.88 as of yesterday's close.

The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 106, putting it in the top 42% 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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