With a market cap of $79.1 billion, Moody's Corporation (MCO) is a leading global provider of credit ratings, research, and risk analysis, headquartered in New York. The company operates through two primary segments: Moody’s Investors Service (MIS), which assigns credit ratings on debt instruments such as corporate bonds, sovereign debt, and structured finance products; and Moody’s Analytics (MA), which offers data, software, and advisory services for risk management, financial modeling, and regulatory compliance.
The credit rating giant is expected to announce its fiscal first-quarter earnings for 2026 on Tuesday, Apr. 28, before the market opens. Ahead of the event, analysts expect MCO to report a profit of $4.40 per share on a diluted basis, up 14.9% from $3.83 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the current year, analysts expect MCO to report EPS of $16.75, up 12.1% from $14.94 in fiscal 2025. Its EPS is expected to rise 11.3% year over year to $18.64 in fiscal 2027.
MCO shares have soared 10.4% over the past year, underperforming both the S&P 500 Index’s ($SPX) 30.3% gains and the Financial Select Sector SPDR Fund’s (XLF) 12.9% gains over the same time frame.
Moody's shares fell 3.6% on Mar. 12, as concerns over instability in the private credit market intensified following tighter lending by JPMorgan Chase & Co. (JPM). The move signaled potential stress in credit markets, triggering broader financial sector weakness and weighing on sentiment for firms like Moody’s that are closely tied to debt issuance and credit conditions.
Analysts’ consensus opinion on MCO stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 24 analysts covering the stock, 16 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” and seven give a “Hold.” MCO’s average analyst price target is $566.90, indicating a potential upside of 22.8% from the current levels.
On the date of publication, Kritika Sarmah 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.
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