DailyIQ
|
Sector:Financial ServicesAll sectors
Last updated 1 minute ago

MCO·Moody's Corporation

$.
-. (-.%)
High
$457.49
Open
$452.34
Market Cap
79.14B
52W High
$546.88
Low
$445.30
P. Close
$451.10
P/E
31.72
52W Low
$402.28
Fwd P/E
24.26
Mean Target
$536.00
Technical Score (1D)
41
SELL
News Sentiment
57
BULLISH
Moody's Corporation (MCO) reported strong first-quarter 2026 earnings and revenue, exceeding market estimates, with its Investors Service segment forecasting high-single-digit growth for 2026. Despite this operational strength, Mizuho Securities adjusted its price target slightly lower to $521 while maintaining a Neutral rating, suggesting a balanced view on the stock's immediate prospects. Concurrently, Daiwa Securities also lowered its price target to $500 but reiterated an 'Outperform' rating, indicating continued positive sentiment from analysts. Recent investor communications have reinforced the narrative that Moody's core ratings business is resilient to AI disruption, with its value stemming from entrenched market structures and regulatory frameworks. This durability is seen as a key factor supporting the company's long-term growth prospects, even as broader AI sector pressures are being evaluated by analysts. The market's current negativity surrounding AI's impact on MCO is considered by some to be overstated, potentially presenting a buying opportunity. Looking ahead, investors will be monitoring future earnings estimates and the company's participation in upcoming investor conferences for further insights into its strategic outlook and valuation.
Earnings Summary
Moody's Corporation is a global provider of risk assessment services, operating through its core credit ratings business, Moody's Investors Service, and its data and analytical tools segment, Moody's Analytics. The company, founded in 1900 and based in New York, is a significant player in the Financial Services sector, specifically within the Financial Data & Stock Exchanges industry, offering essential insights into debt instruments and risk management. In its recent earnings history, Moody's has demonstrated a pattern of exceeding analyst expectations for Earnings Per Share (EPS). For instance, in Q1 2026, the company reported an actual EPS of $4.33 against an estimate of $4.29727, and in Q3 2025, actual EPS was $3.92 compared to an estimate of $3.68371. While revenue estimates were not consistently provided for all recent quarters, the reported revenue for Q1 2026 was $2.079 billion against an estimate of $2.097 billion, and for Q4 2025, actual revenue was $1.889 billion versus an estimate of $2.082 billion. The trend shows consistent EPS beats, but revenue performance has been more mixed against estimates in the most recent periods. Looking at the year-over-year growth trajectory, Moody's has shown a capacity for consistent EPS beats, as seen in Q1 2026 and Q3 2025. However, the company experienced a notable EPS miss in Q4 2025, reporting $3.64 against an estimate of $4.22692. This indicates that while the company often surpasses analyst EPS targets, there can be periods of underperformance relative to expectations. The revenue figures, where available, suggest a strong top-line performance in Q1 2026, but a miss in Q4 2025 warrants attention. Recent news highlights Moody's strong earnings and sales growth, attributed to its dual-engine model combining analytics and credit ratings, despite a year-to-date stock price decline. Analysts are actively assessing the company, with their sentiment providing insights into market perception. Although the company reported a recent earnings beat, its stock price saw a slight decrease of 1.5% since the last earnings report, suggesting potential investor concerns or a disconnect between fundamental performance and market valuation. For the upcoming quarters, investors will be watching for continued strength in Moody's dual-engine business model and its ability to translate strong operational performance into positive stock market returns. Key will be whether the company can consistently meet or exceed revenue estimates, particularly in light of the Q4 2025 miss, and how analyst sentiment evolves in response to ongoing performance and market conditions and any forward-looking guidance provided.

EPS

EstBeatMiss
$3.25$3.55$3.86$4.17$4.47Q1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$4.18 - -
Q1'26$4.30$4.33+0.8%
Q4'25$4.23$3.64-13.9%
Q3'25$3.68$3.92+6.4%
Q2'25$3.39$3.56+5.0%
Q1'25$3.54$3.83+8.2%

Revenue

EstBeatMiss
$1.9B$1.9B$2.0B$2.1B$2.1BQ1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$2.1B - -
Q1'26$2.1B$2.1B-0.9%
Q4'25$2.1B$1.9B-9.3%
Q3'25 - $2.0B -
Q2'25 - $1.9B -
Q1'25 - $1.9B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
→

Market Data

MCO Stock Snapshot

MCO is currently trading at $449.15, giving Moody's Corporation a market cap of 79.14B and a P/E ratio of 31.7. Today's range spans $445.30–$457.49, with shares opening at $452.34 and moving down $1.95 (0.4%) from the prior close. DailyIQ's technical score sits at 41/100 (HOLD) with a news sentiment reading of 57/100.

Over the past year MCO has traded between $402.28 and $546.88 - the current price is +11.7% off the 52-week low and -17.9% from the high. 32 analysts cover the stock with a Buy consensus and a mean 12-month target of $536.00 (range $489.00–$610.00), implying upside of +19.3%.

Neither bulls nor bears have the upper hand on Moody's Corporation (MCO) right now. Score: 41/100 (HOLD). Sentiment: neutral (57/100). Price: $449.15 (in the lower half of its 52-week range). (P/E: 31.7) At 79.14B in Financial Services market cap, the 52-week range of $402.28–$546.88 is the relevant frame - where the stock sits within that range, and whether volume confirms any directional move, matters more than the HOLD label alone.

Portfolio construction in Financial Services often uses large-cap names like MCO as tactical swing positions during neutral phases: cheap enough to overweight, liquid enough to exit quickly, and large enough to provide meaningful sector beta. The current 41/100 (HOLD) at $449.15 (in the lower half of its 52-week range) and neutral sentiment (57/100) frame the position as a catalyst play within the $402.28–$546.88 annual range rather than a directional bet.