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Headquartered in New York City, Moody's Corporation (MCO) is a leading provider of credit ratings, research, and risk analysis, with a market cap of $84.11 billion. Renowned for its insights into financial markets, Moody's plays a pivotal role in supporting global capital markets through its comprehensive range of services, including credit ratings, data, and analytical tools.
Shares of MCO have significantly outperformed the broader market over the past year. The stock has gained 44.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 26.1%. In 2024, the stock is up 23.6%, while the SPX has gained 17.2% on a YTD basis.
Narrowing the focus, MCO outperformed when compared to the iShares U.S. Financials ETF (IYF). The exchange-traded fund has gained 21% on a YTD basis.
On Jul. 23, MCO reported Q2 earnings. The company’s strong second-quarter performance, marked by 22% revenue growth and a 21% rise in operating cash flow, has led to an increased share repurchase guidance of $1.3 billion and an updated adjusted diluted EPS guidance range of $11.00 to $11.40 for the full year. On the day of the earnings release, the stock gained marginally but declined by 4% the following day.
For the current fiscal year, ending in December, analysts expect MCO’s EPS to grow 14.7% to $11.35 on a diluted basis. The company's earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing on another occasion.
Among the 20 analysts covering MCO stock, the consensus rating is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, one “Moderate Buy,” and ten “Holds.”
The mean price target is $470.06, which indicates that the stock trades at a premium. The Street-high price target of $530 suggests an upside potential of 9.8%.
On the date of publication, Rashmi Kumari 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.
