Moody's (MCO) - 18.48% Below 52-Week High: Buy or Wait?

Stock Details

Moody's Corporation (MCO), a prominent company in the financial services sector within the financial data & stock exchanges industry, is based in United States and primarily trades on the NYQ.Currently, the stock is trading at $445.82. Over the past 52 weeks, it has ranged between $402.28 and $546.88. This places the current price at 81.5% of its 52-week high and 10.8% above its 52-week low. Recent trading volume was recorded at 8. The 14-day Relative Strength Index (RSI) stands at 49.85, suggesting neutral conditions. The stock is currently trading above its 50-day moving average of $442.76 by 0.69%. Similarly, it is below its 200-day moving average of $476.88 by 6.51%. The MACD histogram is -0.93, indicating bearish momentum (MACD Line: -2.37, Signal Line: -1.43). The International Securities Identification Number (ISIN) for this stock is US6153691059. There are currently 2 active alerts set for MCO by users.

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

31.86

Above market average

Forward P/E

23.95

Earnings expected to grow

PEG Ratio

2.02

Potentially overvalued

Price to Book

25.98

EV/EBITDA

21.98

EPS (TTM)

$13.98

Price to Sales

9.88

Beta

1.37

Similar volatility to market

Q:How is MCO valued relative to its earnings and growth?

Moody's Corporation trades at a P/E ratio of 31.86, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 23.95 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 2.02 indicates a premium valuation even accounting for growth.

Q:What is MCO's risk profile compared to the market?

With a beta of 1.37, Moody's Corporation is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 25.98 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

31.69%

Operating Margin

45.74%

EBITDA

$3.81B

Return on Equity

71.36%

Return on Assets

14.82%

Revenue Growth (YoY)

8.10%

Earnings Growth (YoY)

7.80%

Q:How profitable and efficient is MCO's business model?

Moody's Corporation achieves a profit margin of 31.69%, meaning it retains $31.69 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 45.74% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 71.36% and ROA at 14.82%, the company generates strong returns on invested capital.

Q:What are MCO's recent growth trends?

Moody's Corporation's revenue grew by 8.10% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 7.80% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against Financial Data & Stock Exchanges industry averages for proper context.

Dividend Information

Dividend Per Share

$4.12

Dividend Yield

0.93%

Ex-Dividend Date

May 15, 2026

Dividend Date

Jun 5, 2026

Q:What dividend income can investors expect from MCO?

Moody's Corporation offers a dividend yield of 0.93%, paying $4.12 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of May 15, 2026.

Q:How reliable is MCO's dividend for long-term investors?

The dividend sustainability can be assessed through the payout ratio - Moody's Corporation pays $4.12 per share in dividends against earnings of $13.98 per share, resulting in a payout ratio of 29.47%. This conservative payout below 30% indicates excellent dividend safety with substantial room for future increases. The company retains most earnings for growth while still rewarding shareholders. The next dividend payment is scheduled for Jun 5, 2026.

Company Size & Market

Market Cap

$77.8B

Revenue (TTM)

$7.87B

Revenue/Share (TTM)

$44.16

Shares Outstanding

174.68M

Book Value/Share

$17.14

Asset Type

EQUITY

Q:What is MCO's market capitalization and position?

Moody's Corporation has a market capitalization of $77.8B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 174.68M shares outstanding, the company's ownership is relatively concentrated. As a participant in the Financial Data & Stock Exchanges industry, it competes with other firms in this sector.

Q:How does MCO's price compare to its book value?

Moody's Corporation's book value per share is $17.14, while the current stock price is $445.82, resulting in a price-to-book (P/B) ratio of 26.01. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As EQUITY, this represents a specific type of security.

Analyst Ratings

Analyst Target Price

$536.00

20.23% upside potential

Analyst Recommendations

Strong Buy

Buy

Hold

Sell

Strong Sell

Q:How reliable are analyst predictions for MCO?

22 analysts cover MCO with 59% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $536.00 implies 20.2% upside, but targets are often adjusted to follow price moves rather than predict them.

Q:What is the Wall Street consensus on MCO?

Current analyst recommendations:3 Strong Buy, 10 Buy, 9 Hold, 00The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: May 22, 2026, 02:19 AM

Technical Indicators

RSI (14-day)

49.85

Neutral

50-Day Moving Average

$442.76

0.69% above MA-50

200-Day Moving Average

$476.88

-6.51% below MA-200

MACD Line

-2.37

MACD Signal

-1.43

MACD Histogram

-0.93

Bearish

Q:What does MCO's RSI value tell investors?

The RSI (Relative Strength Index) for MCO is currently 49.85, indicating the stock is in neutral territory (40-60 range). Neither buyers nor sellers have clear control, suggesting consolidation or balanced market forces. Combined with the price being above the 50-day moving average, this shows mixed signals requiring careful analysis.

Q:How should traders interpret MCO's MACD and moving average crossovers?

MACD analysis shows the MACD line at -2.37 below the signal line at -1.43, with histogram at -0.93. This bearish crossover indicates downward pressure. The 50-day MA ($442.76) is below the 200-day MA ($476.88), forming a death cross pattern that often warns of extended weakness. Price is currently between the MAs, suggesting transition.

Indicators last updated: May 22, 2026, 12:39 PM

Condition	Threshold	Created At
Forward P/E falls below	22 x	Mar 7, 2026, 10:09 AM
P/E Ratio falls below	18 x	Nov 17, 2025, 07:22 AM

Condition

Threshold

Created At

Forward P/E falls below

22 x

Mar 7, 2026, 10:09 AM

P/E Ratio falls below

18 x

Nov 17, 2025, 07:22 AM

Moody's Corporation (MCO) Stock