Morgan Stanley (MS) Is a Trending Stock: Facts to Know Before Betting on It

Core Viewpoint - Morgan Stanley's stock has recently gained attention, with a slight return of +0.6% over the past month, underperforming the S&P 500's +3.4% and the investment banking industry’s +6% [1] Earnings Estimate Revisions - The current quarter's earnings estimate for Morgan Stanley is $1.72 per share, reflecting a +1.2% change year-over-year, with a slight increase of +0.2% in the consensus estimate over the last 30 days [3] - For the current fiscal year, the consensus earnings estimate stands at $6.37, indicating a +16.7% change from the previous year, remaining unchanged over the last month [3] - The next fiscal year's consensus estimate is $7.26, showing a +14.1% increase from the prior year, also unchanged in the past month [3] Revenue Growth Forecast - The consensus sales estimate for the current quarter is $14.53 billion, indicating a year-over-year change of +0.1% [5] - For the current fiscal year, the revenue estimate is $56.88 billion, reflecting a +5.1% change, while the next fiscal year's estimate is $59.53 billion, indicating a +4.7% change [5] Last Reported Results and Surprise History - In the last reported quarter, Morgan Stanley achieved revenues of $12.9 billion, a +1.2% year-over-year change, with an EPS of $1.13 compared to $1.31 a year ago [6] - The reported revenues exceeded the Zacks Consensus Estimate of $12.7 billion by +1.54%, and the EPS surprised by +7.62% [6] - The company has consistently beaten consensus EPS and revenue estimates over the last four quarters [7] Valuation - Morgan Stanley's valuation metrics, including price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), are essential for assessing whether the stock is fairly valued [8] - The Zacks Value Style Score for Morgan Stanley is graded D, indicating it is trading at a premium compared to its peers [9] Conclusion - The Zacks Rank 3 suggests that Morgan Stanley may perform in line with the broader market in the near term, despite the market buzz surrounding the stock [10]