) reached a new 52-week high of $66.70 on Tuesday, May 14, 2013.
The company has recently announced modest first-quarter results
and provided a positive FY13 outlook.
The closing price of Moody's on May 14 was $66.68,
representing a phenomenal one-year return of about 76.03% and a
year-to-date return of about 28.8%. Average volume of shares
traded over the last three months stands at approximately
Moody's delivered an average positive earnings surprise of
10.72% over the past four quarters. This Zacks Rank #2 (Buy)
company has a market cap of $14.86 billion and a long-term
expected earnings growth rate of 13.9%.
First Quarter Highlights
Moody's reported earnings (including litigation settlement
charge) of 83 cents which increased 9% on a year-over-year basis.
Revenues surged 13.0% year over year to $731.8 million primarily
driven by strong performance from both Moody's Investors Service
("MIS") and Moody's Analytics ("MA") division.
Moody's expects 2013 revenues to grow in the high single-digit
percent range. Moreover, MIS revenues for 2013 are expected to
increase in the high single-digit percent range. Moody's also
expects MA revenues for 2013 to increase in the high single-digit
Earnings for 2013 are expected to be in the range of $3.49 to
$3.59 per share. The Zacks Consensus Estimate is pegged at $3.58
In the last 30-day period, the Zacks Consensus Estimate moved
up a penny to 89 cents for the second quarter. During the period,
one upward revision and one subsequent downward revision were
done by analysts covering the stock.
Moody's remains a solid franchise in rating debt instruments
based on its diversified credit research business model and
international growth opportunities. Moreover, the strength in new
domestic debt issuance and the improving clarity over regulatory
climate in Europe are positives.
Other Stocks to Consider
Other stocks that are worth considering include
Dun & Bradstreet Corp
Factset Research Systems Inc
) both of which carry a Zacks Rank #3 (Hold).
) has a Zacks Rank #2 (Buy).
DUN &BRADST-NEW (DNB): Free Stock Analysis
EURONET WORLDWD (EEFT): Free Stock Analysis
FACTSET RESH (FDS): Free Stock Analysis
MOODYS CORP (MCO): Free Stock Analysis Report
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