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

Morgan Stanley (MS) ended the recent trading session at $162.55, demonstrating a -3% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.57%. At the same time, the Dow lost 1.61%, and the tech-heavy Nasdaq lost 0.26%.

Coming into today, shares of the investment bank had lost 6.94% in the past month. In that same time, the Finance sector lost 2.87%, while the S&P 500 lost 0.15%.

The upcoming earnings release of Morgan Stanley will be of great interest to investors. The company's earnings report is expected on April 15, 2026. The company is forecasted to report an EPS of $2.89, showcasing a 11.15% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $19.07 billion, indicating a 7.52% increase compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.09 per share and a revenue of $74.89 billion, indicating changes of +8.62% and +6.01%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for Morgan Stanley. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.14% upward. Morgan Stanley currently has a Zacks Rank of #2 (Buy).

In terms of valuation, Morgan Stanley is presently being traded at a Forward P/E ratio of 15.11. This represents a premium compared to its industry average Forward P/E of 13.43.

One should further note that MS currently holds a PEG ratio of 1.35. 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. As of the close of trade yesterday, the Financial - Investment Bank industry held an average PEG ratio of 1.06.

The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 24, which puts it in the top 10% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.