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Headquartered in New York, Moody’s Corporation (MCO) is a leading provider of financial intelligence and analytics dedicated to advancing global capital markets. With a market cap of $90.1 billion, Moody’s delivers credit ratings, research, and risk management solutions that support investors, financial institutions, and businesses worldwide.
Shares of the financial services company have significantly outperformed the broader market over the past year. The stock has gained 33.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 20.7%. In 2025, the stock is up 5.7%, while the SPX has gained 2.2% on a YTD basis.
Zooming in further, MCO also outperformed when compared to the iShares U.S. Financials ETF (IYF). The exchange-traded fund has gained 29.3% over the past year and 4.4% on a YTD basis.
Moody’s shares have outperformed the broader index, fueled by strong earnings growth, margin expansion, and a shift to end-to-end platforms. The company reported Q4 earnings on Feb. 13, with shares rising 4.4%. Adjusted EPS increased 20% to $2.62, surpassing estimates of $2.60. Revenue grew 13% year-over-year to $1.67 billion, slightly missing the $1.70 billion forecast. The company projects 2025 adjusted EPS between $14 and $14.50.
For the current fiscal year, ending in December, analysts expect MCO’s EPS to grow 11.9% to $13.95 on a diluted basis. The company's earnings surprise history is robust. It beat the consensus estimate in each of the last four quarters.
Among the 21 analysts covering MCO stock, the consensus rating is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, one “Moderate Buy,” nine “Holds,” and one “Strong Sell.”
This consensus is more bullish than three months ago when the stock had nine “Strong Buy” ratings.
On Feb. 18, BMO Capital raised Moody’s price target to $531 from $481, citing a Q4 earnings beat driven by margins and a restructuring shift toward end-to-end platforms, which also boosted its growth targets.
The mean price target is $546, representing a premium of 9.1% compared to MCO’s current price levels. The Street-high price target of $610 suggests an upside potential of 21.9%.
