Moody's Corporation (MCO) Is Strong On High Volume Today

Trade-Ideas LLC identified Moody's Corporation (MCO) as a strong on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Moody's Corporation

(

MCO

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Moody's Corporation as such a stock due to the following factors:

  • MCO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $177.1 million.
  • MCO has traded 212,908 shares today.
  • MCO is trading at 2.76 times the normal volume for the stock at this time of day.
  • MCO is trading at a new high 3.02% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on MCO:

Moody's Corporation provides credit ratings; and credit, capital markets, and economic related research, data, and analytical tools worldwide. The company operates through Moody's Investors Service and Moody's Analytics segments. The stock currently has a dividend yield of 1.4%. MCO has a PE ratio of 21. Currently there are 4 analysts that rate Moody's Corporation a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Moody's Corporation has been 1.1 million shares per day over the past 30 days. Moody's has a market cap of $19.2 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.19 and a short float of 3.3% with 3.34 days to cover. Shares are up 2.4% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Moody's Corporation as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations, growth in earnings per share and increase in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:

  • MCO's revenue growth trails the industry average of 15.2%. Since the same quarter one year prior, revenues slightly increased by 2.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The gross profit margin for MOODY'S CORP is currently very high, coming in at 71.72%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 27.73% significantly outperformed against the industry average.
  • Net operating cash flow has increased to $299.10 million or 18.78% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -17.14%.
  • MOODY'S CORP has improved earnings per share by 14.0% 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. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, MOODY'S CORP increased its bottom line by earning $4.60 versus $3.60 in the prior year. For the next year, the market is expecting a contraction of 0.4% in earnings ($4.58 versus $4.60).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Diversified Financial Services industry average, but is greater than that of the S&P 500. The net income increased by 7.6% when compared to the same quarter one year prior, going from $215.20 million to $231.60 million.

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