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Morgan Stanley (MS) Ascends While Market Falls: Some Facts to Note

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Morgan Stanley (MS - Free Report) closed at $130.32 in the latest trading session, marking a +0.25% move from the prior day. This change outpaced the S&P 500's 0.19% loss on the day. Elsewhere, the Dow lost 0.55%, while the tech-heavy Nasdaq lost 0.18%.

Heading into today, shares of the investment bank had lost 1.14% over the past month, lagging the Finance sector's gain of 6.9% and the S&P 500's gain of 6.66% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Morgan Stanley in its upcoming earnings disclosure. The company's earnings report is set to go public on January 16, 2025. The company is forecasted to report an EPS of $1.54, showcasing a 36.28% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $14.55 billion, reflecting a 12.81% rise from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.32 per share and a revenue of $60.07 billion, indicating changes of +34.07% and +10.95%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for Morgan Stanley. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.53% rise in the Zacks Consensus EPS estimate. Morgan Stanley is currently sporting a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Morgan Stanley has a Forward P/E ratio of 17.75 right now. For comparison, its industry has an average Forward P/E of 17.7, which means Morgan Stanley is trading at a premium to the group.

Investors should also note that MS has a PEG ratio of 1.21 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Financial - Investment Bank industry had an average PEG ratio of 1.52 as trading concluded yesterday.

The Financial - Investment Bank industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 47, finds itself in the top 19% echelons 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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