Is Moody's Stock Underperforming the Nasdaq?

Financial (names J - Z) - Moody's Corp_ logo and chart-by Poerta_ RH via Shutterstock

Based in New York, Moody's Corporation (MCO) operates as an integrated risk assessment firm worldwide. Valued at $75.29 billion by market cap, the company provides credit ratings and related research, data and analytical tools, quantitative credit risk measures, risk scoring software, credit portfolio management solutions, securities pricing software, and valuation models.

Companies worth $10 billion or more are generally described as “large-cap stocks,” and MCO fits that description, signifying its substantial size, stability, and dominance in its industry. The company has a presence in more than 40 countries and a workforce of 15,000 people. 

The global risk assessment company has fallen 1.3% from its 52-week high of $417.75, which it hit on May 22. Shares of MCO are up 7.3% over the past three months, underperforming the broader Nasdaq Composite’s ($NASX) 11.8% gains over the same time frame.

In the long term, MCO shares have risen 20.6% over the past year, and in 2024, the stock is up 5.6%. By contrast, the NASX is up 19% on a YTD basis and 30.4% over the past 52 weeks.

The stock has been trading above its 50-day moving average since early May and above its 200-day moving average since early November 2023, indicating a bullish price trend.

MCO’s overall performance can be attributed to its strong Q1 results and optimistic guidance for the full year. The company’s adjusted EPS came in at $3.37, surpassing the consensus estimate of $3.06. Its revenue stood at $1.79 billion, beating the Wall Street estimates of $1.73 billion. MCO expects its full-year earnings to be between $10.40 and $11.

Rival S&P Global Inc. (SPGI) has underperformed MCO with 9.6% gains in the past 52 weeks and registered a 1.6% decline on a YTD basis.

Despite its recent underperformance compared to the NASX, analysts are optimistic about MCO’s prospects. The stock has a consensus rating of “Moderate Buy” from the 17 analysts covering it, and the mean price target of $411.79 is a marginal discount to current levels.

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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.