Moody’s Corporation Shows Resilience Amid Market Fluctuations

With a market cap of $84.6 billion, Moody’s Corporation (MCO) is a leading player in global risk assessment. Headquartered in New York, the company operates through two key segments: Moody’s Analytics and Moody’s Investors Services.

Classified as a “large-cap” stock, Moody’s fits comfortably in the category of companies valued at $10 billion or more. The firm offers a comprehensive range of financial services, including data analysis, insights, and decision-making solutions that assist companies in their strategic planning.

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Recently, however, Moody’s shares have faced challenges, dipping 11.4% from their 52-week high of $531.93 set on February 14, 2025. Over the last three months, MCO’s shares have decreased by 4.9%, which is a sharper decline compared to the Financial Select Sector SPDR Fund’s (XLF) 2% drop.

In a longer view, Moody’s shares have increased by 20.9% over the past 52 weeks, which is slightly behind the XLF’s return of 21.6% during the same period. Year-to-date (YTD), MCO is also down slightly, underperforming the XLF’s 2.2% gain.

Despite these fluctuations, MCO has consistently traded above its 50-day and 200-day moving averages since last year, indicating stable performance in a volatile market.

In its latest earnings report for Q4 2024, Moody’s revenue reached $1.7 billion, which was below expectations, yet shares rose 4.4% on February 13. Adjusted earnings per share (EPS) of $2.62 exceeded forecasts and reflected a 20% year-over-year growth. Investors received Moody’s 2025 outlook positively, which forecasts high-single-digit revenue growth and an adjusted EPS range of $14 to $14.50. Notably, the Moody’s Investors Services segment reported an 18% increase in revenue, propelled by a 29% rise in transactional revenue, underscoring strong demand for credit ratings and corporate finance services.

In contrast, its competitor, FactSet Research Systems Inc. (FDS), has not performed as well. FDS shares have dropped 5% over the past 52 weeks and are down 8% on a YTD basis.

Although Moody’s has shown better performance compared to its peers, analysts maintain a cautiously optimistic stance. Currently, MCO holds a consensus rating of “Moderate Buy” from 21 analysts monitoring the stock. Presently, MCO trades below the average price target of $546.05.

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

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