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With a market cap of $84.6 billion, Moody's Corporation (MCO) is a global integrated risk assessment company. The New York-based company operates in two segments: Moody's Analytics; and Moody's Investors Services.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks and Moody’s fits this criterion perfectly. The business and financial services company is a global provider of research and insights; data and information, and decision solutions, which help companies make decisions.
However, the company dipped 11.4% from its 52-week high of $531.93, recorded on Feb. 14, 2025. Over the past three months, MCO’s shares have dropped 4.9%, underperforming the Financial Select Sector SPDR Fund’s (XLF) 2% decrease.
In the long term, shares of Moody’s have surged 20.9% over the past 52 weeks, slightly underperforming XLF’s 21.6% return over the same time frame. In addition, MCO is down marginally on a YTD basis, lagging behind XLF’s 2.2% gain.
Yet, MCO has been trading above its 50-day and 200-day moving averages since last year.
Despite reporting weaker-than-expected Q4 2024 revenue of $1.7 billion, shares of Moody's rose 4.4% on Feb. 13. Adjusted EPS of $2.62 beat the expectations, reflecting a 20% year-over-year increase. Investors reacted positively to Moody’s 2025 outlook, which projected high-single-digit revenue growth and an adjusted EPS range of $14 to $14.50. Additionally, Moody’s MIS segment saw an 18% revenue increase, driven by a 29% rise in transactional revenue, indicating strong demand for credit ratings and corporate finance activities.
Furthermore, in contrast, its rival FactSet Research Systems Inc. (FDS) underperformed MCO. Shares of FDS have declined 5% in the last 52 weeks and also dropped 8% on a YTD basis.
Despite the stock’s outperformance relative to its peers, analysts are cautiously optimistic about its prospects. MCO has a consensus rating of “Moderate Buy” from the 21 analysts covering the stock. Currently, MCO is trading below the mean price target of $546.05.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
