Morgan Stanley (MS) Declines More Than Market: Some Information for Investors

Morgan Stanley (MS) closed the most recent trading day at $141.13, moving -1.82% from the previous trading session. This move lagged the S&P 500's daily loss of 0.07%. Elsewhere, the Dow saw a downswing of 0.37%, while the tech-heavy Nasdaq appreciated by 0.03%.

Heading into today, shares of the investment bank had gained 8.94% over the past month, outpacing the Finance sector's gain of 2.38% and the S&P 500's gain of 3.94%.

The upcoming earnings release of Morgan Stanley will be of great interest to investors. The company's earnings report is expected on July 16, 2025. The company's earnings per share (EPS) are projected to be $1.96, reflecting a 7.69% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $15.89 billion, up 5.82% from the prior-year quarter.

MS's full-year Zacks Consensus Estimates are calling for earnings of $8.54 per share and revenue of $65.06 billion. These results would represent year-over-year changes of +7.42% and +5.34%, respectively.

Any recent changes to analyst estimates for Morgan Stanley should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Within the past 30 days, our consensus EPS projection has moved 0.47% lower. Morgan Stanley presently features a Zacks Rank of #3 (Hold).

Investors should also note Morgan Stanley's current valuation metrics, including its Forward P/E ratio of 16.83. This represents a premium compared to its industry average Forward P/E of 16.12.

Investors should also note that MS has a PEG ratio of 1.32 right now. 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. As the market closed yesterday, the Financial - Investment Bank industry was having an average PEG ratio of 1.35.

The Financial - Investment Bank industry is part of the Finance sector. With its current Zacks Industry Rank of 55, this industry ranks in the top 23% of all industries, numbering over 250.

The Zacks Industry Rank is ordered 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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