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

Morgan Stanley (MS) closed the most recent trading day at $84.77, moving -1.84% from the previous trading session. This move lagged the S&P 500's daily loss of 0.84%. Meanwhile, the Dow lost 0.36%, and the Nasdaq, a tech-heavy index, lost 0.12%.

Coming into today, shares of the investment bank had lost 2.53% in the past month. In that same time, the Finance sector lost 7.97%, while the S&P 500 lost 10.24%.

Wall Street will be looking for positivity from Morgan Stanley as it approaches its next earnings report date. This is expected to be October 14, 2022. In that report, analysts expect Morgan Stanley to post earnings of $1.55 per share. This would mark a year-over-year decline of 24.02%. Our most recent consensus estimate is calling for quarterly revenue of $13.3 billion, down 9.82% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.69 per share and revenue of $54.4 billion. These totals would mark changes of -18.61% and -8.97%, respectively, from last 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Morgan Stanley is holding a Zacks Rank of #4 (Sell) right now.

Investors should also note Morgan Stanley's current valuation metrics, including its Forward P/E ratio of 12.91. This represents a discount compared to its industry's average Forward P/E of 13.36.

It is also worth noting that MS currently has a PEG ratio of 1.61. 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 was holding an average PEG ratio of 0.91 at yesterday's closing price.

The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 179, which puts it in the bottom 29% 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.


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