Moodys Stock Buy Hold or Sell Recommendation

MCO Stock  USD 393.03  2.79  0.71%   
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Moodys is 'Strong Hold'. Macroaxis provides Moodys buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Moodys positions. The advice algorithm takes into account all of Moodys' available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Moodys' buy or sell advice are summarized below:
Real Value
351.3
Target Price
367
Hype Value
390.26
Market Value
393.03
Naive Value
378.47
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Moodys given historical horizon and risk tolerance towards Moodys. When Macroaxis issues a 'buy' or 'sell' recommendation for Moodys, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out Moodys Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
To learn how to invest in Moodys Stock, please use our How to Invest in Moodys guide.
In addition, we conduct extensive research on individual companies such as Moodys and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Moodys. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in main economic indicators.

Execute Moodys Buy or Sell Advice

The Moodys recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Moodys. Macroaxis does not own or have any residual interests in Moodys or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Moodys' advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell MoodysBuy Moodys
Strong Hold

Market Performance

Very WeakDetails

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Responds to the marketDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

PoorDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Moodys has a Risk Adjusted Performance of 0.0177, Jensen Alpha of (0.18), Total Risk Alpha of (0.30), Sortino Ratio of (0.06) and Treynor Ratio of 0.0122
Macroaxis provides trade recommendations on Moodys to complement and cross-verify current analyst consensus on Moodys. Our advice engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Moodys is not overpriced, please verify all Moodys fundamentals, including its book value per share, retained earnings, and the relationship between the cash and equivalents and target price . Given that Moodys has a price to book of 21.51 X, we recommend you to check Moodys market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your last-minute risk tolerance and investing horizon.

Moodys Trading Alerts and Improvement Suggestions

Moodys has a poor financial position based on the latest SEC disclosures
Over 80.0% of the company shares are owned by institutional investors
On 15th of March 2024 Moodys paid $ 0.85 per share dividend to its current shareholders
Latest headline from cnbc.com: Baltimore bridge collapse poses little threat to U.S. economic growth, experts say

Moodys Returns Distribution Density

The distribution of Moodys' historical returns is an attempt to chart the uncertainty of Moodys' future price movements. The chart of the probability distribution of Moodys daily returns describes the distribution of returns around its average expected value. We use Moodys price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Moodys returns is essential to provide solid investment advice for Moodys.
Mean Return
0.03
Value At Risk
-1.72
Potential Upside
1.80
Standard Deviation
1.41
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Moodys historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Moodys Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Moodys is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Moodys backward and forwards among themselves. Moodys' institutional investor refers to the entity that pools money to purchase Moodys' securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Goldman Sachs Group Inc2023-12-31
2.9 M
Bank Of New York Mellon Corp2023-12-31
2.6 M
Ninety One Uk Limited2023-12-31
1.9 M
Norges Bank2023-12-31
1.8 M
Stonepine Asset Management Inc.2023-12-31
1.8 M
Longview Partners (guernsey) Ltd.2023-12-31
1.7 M
Rothschild & Co Wealth Management Uk Ltd2023-12-31
1.7 M
Veritas Asset Management Llp2023-12-31
1.6 M
Northern Trust Corp2023-12-31
1.6 M
Berkshire Hathaway Inc2023-09-30
24.7 M
Vanguard Group Inc2023-12-31
14.2 M
Note, although Moodys' institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Moodys Cash Flow Accounts

201920202021202220232024 (projected)
Change In Cash147M765M(786M)(42M)361M379.1M
Free Cash Flow1.6B2.0B1.9B1.2B1.9B2.0B
Depreciation200M220M257M331M373M391.7M
Other Non Cash Items52M1M(23M)(21M)54M56.7M
Dividends Paid378M420M463M515M(564M)(535.8M)
Capital Expenditures69M103M139M283M271M284.6M
Net Income1.4B1.8B2.2B1.4B1.6B864.4M
End Period Cash Flow1.8B2.6B1.8B1.8B2.1B1.1B
Investments41M(77M)(290M)(262M)(235.8M)(224.0M)
Change Receivables(134M)31M(257M)34M30.6M32.1M
Net Borrowings(129M)688M1.2B362M416.3M489.7M
Change To Netincome112M143M(66M)246M282.9M297.0M

Moodys Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Moodys or Capital Markets sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Moodys' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Moodys stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
-0.18
β
Beta against NYSE Composite1.60
σ
Overall volatility
1.46
Ir
Information ratio -0.07

Moodys Volatility Alert

Moodys has relatively low volatility with skewness of -2.75 and kurtosis of 14.69. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Moodys' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Moodys' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Moodys Fundamentals Vs Peers

Comparing Moodys' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Moodys' direct or indirect competition across all of the common fundamentals between Moodys and the related equities. This way, we can detect undervalued stocks with similar characteristics as Moodys or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Moodys' fundamental indicators could also be used in its relative valuation, which is a method of valuing Moodys by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Moodys to competition
FundamentalsMoodysPeer Average
Return On Equity0.52-0.31
Return On Asset0.0964-0.14
Profit Margin0.27 %(1.27) %
Operating Margin0.36 %(5.51) %
Current Valuation76.59 B16.62 B
Shares Outstanding182.56 M571.82 M
Shares Owned By Insiders13.76 %10.09 %
Shares Owned By Institutions80.46 %39.21 %
Number Of Shares Shorted1.09 M4.71 M
Price To Earning35.64 X28.72 X
Price To Book21.51 X9.51 X
Price To Sales12.09 X11.42 X
Revenue5.92 B9.43 B
Gross Profit3.85 B27.38 B
EBITDA2.59 B3.9 B
Net Income1.61 B570.98 M
Cash And Equivalents1.77 B2.7 B
Cash Per Share9.53 X5.01 X
Total Debt7.42 B5.32 B
Debt To Equity3.38 %48.70 %
Current Ratio1.80 X2.16 X
Book Value Per Share18.18 X1.93 K
Cash Flow From Operations2.15 B971.22 M
Short Ratio1.26 X4.00 X
Earnings Per Share8.72 X3.12 X
Price To Earnings To Growth2.33 X4.89 X
Target Price399.24
Number Of Employees15.15 K18.84 K
Beta1.27-0.15
Market Capitalization71.51 B19.03 B
Total Asset14.62 B29.47 B
Retained Earnings14.66 B9.33 B
Working Capital1.72 B1.48 B
Note: Acquisition by John Wulff of 808 shares of Moodys subject to Rule 16b-3 [view details]

Moodys Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Moodys . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Moodys Buy or Sell Advice

When is the right time to buy or sell Moodys? Buying financial instruments such as Moodys Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2021 2022 2023 2024 (projected)
Short and Long Term Debt Total560M474M7.4B7.8B
Total Assets14.7B14.3B14.6B15.4B

Use Investing Ideas to Build Portfolios

In addition to having Moodys in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Aggressive Defence Thematic Idea Now

Aggressive Defence
Aggressive Defence Theme
Macroaxis small cap, aggressive-outlook picks designed for investors that are willing to accept higher levels of risk to hedge exposure to above-average market volatility. The Aggressive Defence theme has 50 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Aggressive Defence Theme or any other thematic opportunities.
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When determining whether Moodys offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Moodys' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Moodys Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Moodys Stock:
Check out Moodys Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
To learn how to invest in Moodys Stock, please use our How to Invest in Moodys guide.
Note that the Moodys information on this page should be used as a complementary analysis to other Moodys' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

Complementary Tools for Moodys Stock analysis

When running Moodys' price analysis, check to measure Moodys' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Moodys is operating at the current time. Most of Moodys' value examination focuses on studying past and present price action to predict the probability of Moodys' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Moodys' price. Additionally, you may evaluate how the addition of Moodys to your portfolios can decrease your overall portfolio volatility.
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Is Moodys' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Moodys. If investors know Moodys will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Moodys listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.382
Dividend Share
3.08
Earnings Share
8.72
Revenue Per Share
32.293
Quarterly Revenue Growth
0.147
The market value of Moodys is measured differently than its book value, which is the value of Moodys that is recorded on the company's balance sheet. Investors also form their own opinion of Moodys' value that differs from its market value or its book value, called intrinsic value, which is Moodys' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Moodys' market value can be influenced by many factors that don't directly affect Moodys' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Moodys' value and its price as these two are different measures arrived at by different means. Investors typically determine if Moodys is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Moodys' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.