New Lifetime High Reached: 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.

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 $80.5 million.
  • MCO has traded 24,236 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 company operates through Moody's Investors Service and Moody's Analytics segments. The stock currently has a dividend yield of 1.3%. MCO has a PE ratio of 23.4. Currently there are 5 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 1.1 million shares per day over the past 30 days. Moody's has a market cap of $21.8 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.48 and a short float of 3.1% with 7.27 days to cover. Shares are up 12.4% year-to-date as of the close of trading on Wednesday.

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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, solid stock price performance, increase in net income, good cash flow from operations and expanding profit margins. 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:
  • The revenue growth came in higher than the industry average of 2.4%. Since the same quarter one year prior, revenues rose by 12.6%. 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 34.90% 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.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Diversified Financial Services industry. The net income increased by 14.3% when compared to the same quarter one year prior, going from $206.70 million to $236.30 million.
  • Net operating cash flow has increased to $308.80 million or 12.98% when compared to the same quarter last year. In addition, MOODY'S CORP has also modestly surpassed the industry average cash flow growth rate of 12.72%.
  • The gross profit margin for MOODY'S CORP is currently very high, coming in at 70.88%. Regardless of MCO's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MCO's net profit margin of 26.92% significantly outperformed against the industry.

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