Morgan Stanley Outperforms Market: Key Factors and Valuation Analysis

RaydenBusiness2025-06-269490

In the latest trading session, Morgan Stanley (MS) closed up +1.42% at $135.90, outperforming the S&P 500, which registered a gain of 1.11% for the day. Meanwhile, the Dow gained 1.19%, and the Nasdaq, a tech-heavy index, added 1.43%. Prior to today's trading, shares of the investment bank had gained 6.29%, outpacing the Finance sector's gain of 1.91% and the S&P 500's gain of 3.92%. Market participants will be closely following the financial results of Morgan Stanley in its upcoming release, as the company plans to announce its earnings on July 16, 2025. It is anticipated that the company will report an EPS of $2, marking a 9.89% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $15.97 billion, indicating a 6.36% growth compared to the corresponding quarter of the prior year. The full-year Zacks Consensus Estimates for Morgan Stanley call for earnings of $8.57 per share and revenue of $65.12 billion, representing year-over-year changes of +7.8% and +5.43%, respectively. It is also important to note the recent changes to analyst estimates for Morgan Stanley, which reflect the latest short-term business trends and can change frequently. Positive estimate revisions reflect analyst optimism about the business and profitability. Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance, and we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system. The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell) and has a remarkable, outside-audited track record of success with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.1% lower, and as of now, Morgan Stanley holds a Zacks Rank of #3 (Hold). Valuation is also important for investors to consider, and Morgan Stanley currently has a Forward P/E ratio of 15.64, which marks a premium compared to its industry average Forward P/E of 15.02. Additionally, MS has a PEG ratio of 1.22, which is similar to the average PEG ratio for the Financial - Investment Bank industry at 1.26 at the close of the market yesterday. The Financial - Investment Bank industry is part of the Finance sector and currently holds a Zacks Industry Rank of 96, positioning it in the top 40% of all 250+ industries. 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. In conclusion, Morgan Stanley is a well-performing stock with positive analyst estimates and industry rankings. Investors should consider these factors when making their investment decisions in the upcoming trading sessions. For more information and recommendations from Zacks Investment Research, download their free report on Morgan Stanley (MS) today.

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