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Morgan Stanley (MS) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Morgan Stanley (MS) closed at $105.45, marking a +1.55% move from the previous day.


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This story originally appeared on Zacks

In the latest trading session, Morgan Stanley (MS) closed at $105.45, marking a +1.55% move from the previous day. This change outpaced the S&P 500’s 0.88% gain on the day.

Coming into today, shares of the investment bank had gained 7.85% in the past month. In that same time, the Finance sector gained 2.89%, while the S&P 500 gained 1.2%.

Investors will be hoping for strength from MS as it approaches its next earnings release. On that day, MS is projected to report earnings of $1.60 per share, which would represent year-over-year growth of 0.63%. Our most recent consensus estimate is calling for quarterly revenue of $13.46 billion, up 15.47% from the year-ago period.

MS’s full-year Zacks Consensus Estimates are calling for earnings of $7.46 per share and revenue of $57.44 billion. These results would represent year-over-year changes of +13.37% and +19.18%, respectively.

It is also important to note the recent changes to analyst estimates for MS. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.48% higher. MS is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note MS’s current valuation metrics, including its Forward P/E ratio of 13.93. Its industry sports an average Forward P/E of 10.91, so we one might conclude that MS is trading at a premium comparatively.

We can also see that MS currently has a PEG ratio of 2.21. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. MS’s industry had an average PEG ratio of 0.84 as of yesterday’s close.

The Financial – Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 105, putting it in the top 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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