Will This Upgrade Help Moody's (MCO) Today? (Update)

Update (9:40 a.m.): Updated with Monday market open information.

NEW YORK (TheStreet) --  Benchmark raised its target price on Moody's ( MCO) to $81, raised its estimates and set a "hold" rating. The firm cited higher bond issuance activity as the reason for the increase.

The stock was down 0.16% to $79.89 at 9:40 a.m. on Monday.

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Separately, TheStreet Ratings team rates MOODY'S CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate MOODY'S CORP (MCO) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • 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 61.65% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MCO should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • MCO's revenue growth trails the industry average of 13.4%. Since the same quarter one year prior, revenues slightly increased by 2.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Diversified Financial Services industry and the overall market, MOODY'S CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for MOODY'S CORP is currently very high, coming in at 71.16%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 26.06% significantly outperformed against the industry average.
  • You can view the full analysis from the report here: MCO Ratings Report

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