Moody's Corporation Stock Buy Recommendation Reiterated (MCO)
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- The revenue growth came in higher than the industry average of 4.2%. Since the same quarter one year prior, revenues rose by 13.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- MOODY'S CORP has improved earnings per share by 9.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MOODY'S CORP increased its bottom line by earning $3.03 versus $2.49 in the prior year. This year, the market expects an improvement in earnings ($3.56 versus $3.03).
- The gross profit margin for MOODY'S CORP is currently very high, coming in at 72.60%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 25.74% is above that of the industry average.
- Net operating cash flow has significantly increased by 226.77% to $202.60 million when compared to the same quarter last year. Despite an increase in cash flow of 226.77%, MOODY'S CORP is still growing at a significantly lower rate than the industry average of 642.07%.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 79.35% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
--Written by a member of TheStreet Ratings Staff. Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.
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