Here's Why Morgan Stanley (MS) Fell More Than Broader Market

Core Viewpoint - Morgan Stanley's stock performance and upcoming earnings release are of significant interest to investors, with positive growth projections for both EPS and revenue compared to the previous year [1][2]. Group 1: Stock Performance - Morgan Stanley's stock closed at $100.74, reflecting a decrease of -0.78% from the previous day, which is less than the S&P 500's loss of 0.27% [1]. - Over the past month, Morgan Stanley's stock has increased by 8.29%, outperforming the Finance sector's gain of 5.74% and the S&P 500's gain of 7.34% [1]. Group 2: Earnings Projections - The upcoming earnings release is expected to show an EPS of $1.66, indicating a growth of 33.87% year-over-year [1]. - Revenue is projected to be $14.28 billion, representing a 6.09% increase compared to the same quarter last year [1]. - For the full year, earnings are estimated at $6.83 per share and revenue at $57.84 billion, reflecting changes of +25.09% and +6.82% respectively from the prior year [1]. Group 3: Analyst Estimates and Rankings - Recent revisions in analyst estimates indicate a favorable outlook on Morgan Stanley's business health and profitability, with a 0.99% upward shift in the Zacks Consensus EPS estimate over the past month [2]. - Morgan Stanley currently holds a Zacks Rank of 1 (Strong Buy), which has historically generated an average annual return of +25% since 1988 [2]. Group 4: Valuation Metrics - Morgan Stanley's Forward P/E ratio is 14.86, which is lower than the industry's Forward P/E of 18.37, indicating a valuation discount [3]. - The company has a PEG ratio of 1.24, compared to the Financial - Investment Bank industry's average PEG ratio of 1.15 [3]. - The Financial - Investment Bank industry is ranked 16 in the Zacks Industry Rank, placing it in the top 7% of over 250 industries [3].