The Unprecedented Rise of Moody’s Corporation (NYSE:MCO)

The Unprecedented Rise of Moody’s Corporation (NYSE:MCO)

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The Moody’s Corporation (MCO) shares are trading at higher $276.17 and the avg recommendation for the stock is Moderate Buy. The current analyst price target stands at $274.64.

To add more color to this target, the company’s high over the last year is $287.25 and the low is $164.19. Over the last 52 weeks, MCO is down -3.86% while the S&P 500 is up 1.07%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, MCO reported a profit of $950.0 million. Moody’s Corporation also saw revenues increase to $1.29 billion. In addition, MCO has free cash flow of $324.0 million as of 03-2020 The company’s EBITDA came in at $641.0 million which compares well with its peers.

MCO booked profit margins of 30.90%, its Return on Equity (ROE) is 304.50%, and its Return on Assets is 15.10%. All told, it is clear that, MCO needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. MCO has a short ratio of 2.07 and outstanding shares of 187.50M.

Company Outlook

MCO has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.56 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 8.06. Moody’s Corporation MCO also noted assets of $11.31 billion at the end of the last quarter. Investors should also keep an eye on sector updates as MCO has historically followed its peers on positive news.

All told, Moody’s Corporation MCO has strung together solid data and demonstrated underlying fundamentals. At its current valuation, MCO represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Moody’s Corporation MCO is now commanding a market cap of 51.72B and a float of 186.72M. MCO is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of MCO stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in MCO, either long or short, and we have not been compensated for this article.