Moody's is a genuinely high-quality franchise — operating margins of 32%, ROE of 71%, and a Piotroski F-Score of 7 out of 9 — and has delivered four consecutive earnings beats averaging about 5% above consensus; the stock nonetheless sits in a confirmed downtrend with the moving average declining 1.9% per month, leverage at a debt-to-equity ratio of 2.4 introduces meaningful balance-sheet risk, and the risk/reward of 1.24-to-1 does not yet reach the asymmetry threshold despite 6.2% upside to the analyst consensus target.
Thesis pillars
- High Quality Franchise Margins→Stable
- Four Quarter Earnings Beat Streak→Stable
- Confirmed Downtrend Technical Pressure→Stable
- +1 more pillar — see the Why tab for full reasoning
Moody's Corporation (MCO) Stock Analysis
Recovery setup · Catalyst-Driven edge
Financial Services · Financial Data & Stock Exchanges
Sell if holding. Analyst target reached at $490.51 — A.R:R is negative (-0.1) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 2.4): -1.5.
In a world shaped by increasingly interconnected risks, Moody's data, insights, and innovative technologies help customers develop a holistic view of their world and unlock opportunities. Moody's offerings are distinguished by our vast proprietary and curated data and validated... Read more
Sell if holding. Analyst target reached at $490.51 — A.R:R is negative (-0.1) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 2.4): -1.5. Chart setup: Death cross but MACD improving, RSI 70. Score 5.4/10, high confidence.
Passes 8/10 gates (positive momentum, clean insider activity, positive momentum, no SEC red flags, news events none recent, earnings proximity 20d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.
About Moody's Corporation
About Moody's Corporation
Moody's Corporation generated revenue across two segments in fiscal 2025 — Moody's Investors Service (MIS) and Moody's Analytics (MA) — employing approximately 16,000 people across more than 40 countries and maintaining a presence in major global debt and risk-intelligence markets. MIS has operated as a credit rating agency for over 115 years, while MA offers curated data, research, and cloud-based workflow tools to banks, insurers, corporations, and governments navigating regulatory compliance and risk management demands.
MIS earns revenue primarily through rating fees paid by debt issuers, making a substantial portion of MIS revenue dependent on the volume and number of ratable debt securities issued in global capital markets. Annual fee arrangements with frequent issuers, debt monitoring fees, and commercial paper program ratings partially offset this dependence on new-issuance volumes. MA generates subscription-based revenue through three product lines: Research and Insights (fixed income and economic research), Data and Information (the world's largest commercial-entity database by Moody's description), and Decision Solutions (cloud-based applications for banking, insurance, and KYC workflows). MA's customer base includes banks and financial services providers who are subject to regulatory oversight and contractually pass through regulatory requirements to key data and analytics suppliers such as MA, creating sticky demand. MIS competes with S&P Global Ratings and Fitch Ratings, while MA competes with diversified providers of financial data, economic research, and enterprise risk software.
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Moody's regulatory posture is a material operational dimension: MIS is registered with the SEC as a Nationally Recognized Statistical Rating Organization and is subject to SEC oversight and examination authority; MIS EU subsidiaries are registered with and supervised by ESMA under the pan-EU CRA regulatory framework; and MIS U.K. is regulated by the FCA. The EU Digital Operational Resilience Act (DORA), effective for EU financial institutions, imposes third-party ICT risk management requirements on MA as a data provider, and the EU AI Act — published July 2024 with phased implementation — could increase compliance costs depending on how the European Commission's proposed burden-reduction measures are finalized. The EU Regulation on ESG Rating Activities becomes applicable in July 2026, and certain MIS products may fall within its scope, adding a dated regulatory milestone that could require procedural and substantive changes to affected product lines.
See also: Financial Services · Financial Data & Stock Exchanges
From Moody's Corporation's most recent 10-K filing, extracted June 24, 2026.
Recent developments
updated 2026-07-06Recent Developments — Moody's Corporation
Latest news
- NEWS Moody's Corp. stock outperforms competitors on strong trading day - MarketWatch — MarketWatch positive
- NEWS Moody's (MCO) reports next week: Wall Street expects earnings growth - MSN — MSN neutral
- NEWS Analysts’ Top Financial Picks: Moody’s (MCO), Goldman Sachs Group (GS) - The Globe and Mail — The Globe and Mail positive
- NEWS Moody's (MCO) to Release Quarterly Earnings on Wednesday - MarketBeat — MarketBeat neutral
- NEWS Seeking clues to Moody's (MCO) Q1 earnings? A peek into Wall Street projections for key metrics - MSN — MSN positive
Generated 2026-07-06T05:40:27Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
2 floor-breakers
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $490.51 — A.R:R is negative (-0.1) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 2.4): -1.5. Chart setup: Death cross but MACD improving, RSI 70. Prior stop was $462.31. Score 5.4/10, high confidence.
Take-profit target: $480.93 (-2.0% upside). Prior stop was $462.31. Stop-loss: $462.31.
Analyst target reached - limited upside remaining; Leverage penalty (D/E 2.4): -1.5; Expensive valuation.
Moody's Corporation trades at a P/E of 35.2 (forward 26.4). TrendMatrix value score: 3.5/10. Verdict: Sell.
30 analysts cover MCO with a consensus score of 4.0/5. Average price target: $537.
What does Moody's Corporation do?In a world shaped by increasingly interconnected risks, Moody's data, insights, and innovative technologies help...
In a world shaped by increasingly interconnected risks, Moody's data, insights, and innovative technologies help customers develop a holistic view of their world and unlock opportunities. Moody's offerings are distinguished by our vast proprietary and curated data and validated analytical models, which provide the trusted foundation that enable our customers to navigate an increasingly complex risk landscape.