New Lifetime High Today: Moody's Corporation (MCO)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Moody's Corporation ( MCO) as a new lifetime high 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 $100.5 million.
  • MCO has traded 7,053 shares today.
  • MCO is trading at a new lifetime high.

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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 stock currently has a dividend yield of 1.1%. MCO has a PE ratio of 22.5. Currently there are 4 analysts that rate Moody's Corporation a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Moody's Corporation has been 997,200 shares per day over the past 30 days. Moody's has a market cap of $20.7 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.64 and a short float of 3.3% with 6.48 days to cover. Shares are up 26.6% year-to-date as of the close of trading on Tuesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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, notable return on equity, reasonable valuation levels, solid stock price performance and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • MCO's revenue growth has slightly outpaced the industry average of 11.3%. Since the same quarter one year prior, revenues rose by 15.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 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 36.95% 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.
  • MOODY'S CORP has improved earnings per share by 20.5% 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 $3.60 versus $3.03 in the prior year. This year, the market expects an improvement in earnings ($4.05 versus $3.60).
  • 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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