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New York-based MSCI Inc. (MSCI) provides critical decision support tools and solutions for the global investment community to manage investment processes. Valued at $38.75 billion by market cap, the company’s research, data, and technology expertise enables clients to understand and analyze key drivers of risk and return, helping build more effective portfolios. Its research-enhanced solutions help clients gain insights and improve transparency across the investment process.
Companies worth $10 billion or more are generally described as “large-cap” stocks, and MSCI perfectly fits that description, signifying its substantial size, stability, and dominance in its industry.
The leading investment research firm has fallen 20.8% from its 52-week high of $617.39, which it hit on Jan. 30. Shares of MSCI are down 11.5% over the past three months, underperforming the Dow Jones Industrials Average’s ($DOWI) marginal gains over the same time frame.
Longer term, MSCI shares have risen 5% over the past year, and in 2024, the stock is down 13.7%. By contrast, DOWI is up 4.4% on a YTD basis and 16.6% over the past 52 weeks.
The stock has been trading above its 50-day moving average since late June but below its 200-day moving average since mid-April.
On Apr. 23, MSCI shares closed down more than 13% after it reported its Q1 results. Its operating revenue was $680 million, falling short of the consensus estimate of $685.2 million. The company’s adjusted EPS of $3.52 surpassed the Wall Street estimates of $3.44.
Rival Intercontinental Exchange, Inc. (ICE) has outperformed MSCI. ICE stock has gained 24.1% in the past 52 weeks and is up 7.4% on a YTD basis.
Despite its recent underperformance compared to DOWI, analysts are optimistic about MSCI’s prospects. The stock has a consensus rating of “Moderate Buy” from the 17 analysts covering it, and the mean price target of $569.25 is a 16.4% premium to current levels.
On the date of publication, Dipanjan Banchur 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.
