Stock of the Day

Moody's (MCO)

$491.80

+$4.26 (+0.9%)

Market Cap: $88.40B

About Moody's

Moody's Corporation operates as an integrated risk assessment firm worldwide. It operates in two segments, Moody's Analytics and Moody's Investors Services. The Moody's Analytics segment develops a range of products and services that support the risk management activities of institutional participants in financial markets.

It also offers credit research, credit models and analytics, economics data and models, and structured finance solutions; data sets on companies and securities; and SaaS solutions supporting banking, insurance, and know your customer workflows. The Moody's Investors Service segment publishes credit ratings and provides assessment services on various debt obligations, programs and facilities, and entities that issue such obligations, such as various corporate, financial institution, and governmental obligations, as well as structured finance securities. The company was formerly known as Dun and Bradstreet Company and changed its name to Moody's Corporation in September 2000. Moody's Corporation was founded in 1900 and is headquartered in New York, New York.

Moody's Bull Case

Here are some ways that investors could benefit from investing in Moody's Co.:

• The current stock price is around $485, suggesting potential for growth as analysts have set a price target of $550, indicating a possible upside of over 13%.
• Moody's Co. has recently reported strong quarterly earnings, exceeding analysts' expectations with an EPS of $3.83, which reflects the company's robust financial health.
• The company maintains a high net margin of approximately 29%, indicating efficient management and profitability, which can be attractive to investors looking for stable returns.
• Moody's Co. has a solid return on equity of about 58.94%, showcasing its ability to generate profits from shareholders' equity, a key metric for assessing financial performance.
• Analysts have a consensus rating of "Moderate Buy" for Moody's Co., with a significant number of buy ratings, suggesting positive sentiment in the market regarding the company's future performance.

Moody's Bear Case

Investors should be bearish about investing in Moody's Co. for these reasons:

• The stock has a relatively high price-to-earnings (P/E) ratio of around 43, which may indicate that the stock is overvalued compared to its earnings, potentially leading to a price correction.
• Moody's Co. has a debt-to-equity ratio of 1.81, suggesting that the company relies significantly on debt financing, which can increase financial risk, especially in volatile market conditions.
• Recent analyst reports have shown mixed ratings, with some firms downgrading their price targets, indicating uncertainty about the company's future performance.
• The stock has experienced fluctuations, with a 12-month high of $531.93 and a low of $378.71, reflecting volatility that may concern risk-averse investors.
• With a dividend yield of only 0.79%, the returns from dividends may not be attractive enough for income-focused investors, especially in a rising interest rate environment.

Recent News

• Is Moody's Stock Outperforming the S&P 500? (msn.com)
• Odfjell Drilling ratings upgraded to B1 by Moody's Ratings (investing.com)
• US life insurers shifted $800 billion offshore from 2019 to 2024, Moody's says (finance.yahoo.com)
• Indian banks retain stable asset quality, says Moody's (investing.com)
• Sovereign Ratings, Default Risk And Markets: The Moody's Downgrade Aftermath (seekingalpha.com)
• US life insurers shifted $800 billion offshore from 2019 to 2024, Moody's says (investing.com)
• Moody's Changes Brazil's Outlook to Stable From Positive, Affirms Ba1 Ratings (money.usnews.com)
• Moody's lowers Brazil outlook to stable (msn.com)