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Moody's Corporation (MCO), with a market capitalization of $78.3 billion, stands as a global powerhouse in credit ratings, risk assessment, and financial intelligence. Headquartered in New York, the company operates through two main divisions, Moody’s Investors Service, which issues credit ratings for debt instruments, and Moody’s Analytics, which delivers advanced tools, software, and data solutions for risk management and regulatory compliance.
The credit rating titan is expected to release its fiscal second-quarter earnings on Tuesday, July 22. Ahead of the event, analysts expect MCO to report a profit of $3.30 per share on a diluted basis, up marginally from $3.28 per share in the year-ago quarter. The company has beaten the consensus estimates in each of the last four quarters.
For the current year, analysts expect MCO to report EPS of $13.60, up 9.1% from $12.47 in fiscal 2024. Its EPS is expected to rise 13% year over year to $15.37 in fiscal 2026.
Over the past 52 weeks, MCO has climbed 19.2%, outperforming the S&P 500’s ($SPX) 13.2% gains. However, the stock lagged behind the Financial Select Sector SPDR Fund (XLF), which surged 27.8% gains over the same period.
On Apr. 22, Moody’s stock jumped 4% following the release of its strong Q1 results. Revenue rose 7.7% year-over-year to $1.9 billion, surpassing Wall Street expectations by 2.3%, thanks to robust growth across all business segments, with its ratings division delivering a record-breaking quarter. Adjusted EPS came in at $3.83, beating consensus estimates by 7.6%.
Analysts’ consensus opinion on MCO stock is fairly optimistic, with an overall “Moderate Buy” rating. Out of 24 analysts covering the stock, 12 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” ten give a “Hold,” and one recommends a “Strong Sell.”
MCO’s average analyst price target is $508.95, indicating a potential upside of 1.3% from the current levels.
On the date of publication, Kritika Sarmah 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.
