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Valued at a market cap of $44.3 billion, MSCI Inc. (MSCI) provides critical decision support tools and solutions for the investment community to manage investment processes worldwide. The New York-based company provides various support tools and solutions including indexes, portfolio construction and risk management products and services, Environmental, Social, and Governance (ESG) research and ratings, and real estate research as well.
Companies worth more than $10 billion are generally described as “large-cap” stocks, and MSCI fits right into that category. With over 50 years of expertise in research, data, and technology, the company helps clients understand and analyze key drivers of risk and return and enables them to build more effective portfolios.
Despite a 9.3% decline from its 52-week high of $617.39 reached on Jan. 30, shares of this financial data company have gained 14.7% over the past three months, surpassing the Financial Select Sector SPDR Fund’s (XLF) 9.4% return over the same time frame.
However, in the longer term, MSCI stock is down 1% on a YTD basis, lagging behind XLF’s 18.6% gains. Moreover, shares of MSCI have gained 6.4% over the past 52 weeks, underperforming XLF’s 28.6% returns over the same time frame.
Yet, MSCI has been trading above its 200-day moving average since early August and has remained above its 50-day moving average since July, indicating a bullish trend.
On Jul. 23, MSCI surged 7.9% following its better-than-expected Q2 earnings release, with adjusted earnings of $3.64 per share and revenues of $707.9 billion. The strong performance was primarily driven by a year-over-year increase in asset-based fees and growth in recurring subscriptions fueled by strong growth from market-cap-weighted Index products and ETFs linked to MSCI equity indexes.
MSCI has lagged behind its rival, S&P Global Inc. (SPGI), which rallied 18.8% on a YTD basis and 34.3% over the past 52 weeks.
Despite MSCI’s underperformance relative to the broader sector over the past year, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 17 analysts covering the stock, and the mean price target of $592.85 suggests a just 5.9% premium to its current levels.
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.
