Subscribe to Entrepreneur for $5
Subscribe

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

Morgan Stanley (MS) closed at $98.16 in the latest trading session, marking a -0.65% move from the prior day.

By
This story originally appeared on Zacks

Morgan Stanley (MS) closed at $98.16 in the latest trading session, marking a -0.65% move from the prior day. This change lagged the S&P 500's daily loss of 0.26%. Meanwhile, the Dow lost 0.16%, and the Nasdaq, a tech-heavy index, lost 0.04%.

- Zacks

Prior to today's trading, shares of the investment bank had lost 0.06% over the past month. This has lagged the Finance sector's gain of 4.39% and the S&P 500's gain of 4.82% in that time.

Investors will be hoping for strength from Morgan Stanley as it approaches its next earnings release, which is expected to be January 19, 2022. The company is expected to report EPS of $1.90, down 1.04% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $14.65 billion, up 7.42% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.97 per share and revenue of $59.89 billion, which would represent changes of +21.12% and +24.25%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Morgan Stanley. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 remained stagnant. Morgan Stanley is currently a Zacks Rank #2 (Buy).

In terms of valuation, Morgan Stanley is currently trading at a Forward P/E ratio of 12.39. Its industry sports an average Forward P/E of 11.28, so we one might conclude that Morgan Stanley is trading at a premium comparatively.

Also, we should mention that MS has a PEG ratio of 1.76. 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. Financial - Investment Bank stocks are, on average, holding a PEG ratio of 1.11 based on yesterday's closing prices.

The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 14, putting it in the top 6% 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.



Zacks Top 10 Stocks for 2022

In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022?

From inception in 2012 through November, the Zacks Top 10 Stocks gained an impressive +962.5% versus the S&P 500’s +329.4%. Now our Director of Research is combing through 4,000 companies covered by the Zacks Rank to handpick the best 10 tickers to buy and hold. Don’t miss your chance to get in on these stocks when they’re released on January 3.

Be First To New Top 10 Stocks >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

 

Morgan Stanley (MS): Free Stock Analysis Report

 

To read this article on Zacks.com click here.