On Mar 21, 2013, Zacks Investment Research upgraded
Moody's Corp. (
to a Zacks Rank #1 (Strong Buy). With a strong return of 23.4%
over the past one year and a positive estimate revision trend,
Moody's is an attractive investment opportunity.
Why the Upgrade?
Upbeat fourth quarter results, strength in new domestic debt
issuance and improving clarity over regulatory climate in Europe
contributed to the upgrade.
Moody's reported fourth quarter results on Feb 8, 2013.
Earnings of 70 cents per share jumped 62.8% from the year-ago
quarter and were in line with the Zacks Consensus Estimate. This
was the fourth consecutive quarter of positive earnings surprise
with an average beat of 10.4%.
The better-than-expected earnings were primarily driven by
33.0% surge in revenues and 53.7% jump in operating income.
Based on the strong results, Moody's provided optimistic
guidance for fiscal 2013. Moody's expects 2013 revenues to grow
in the high single-digit percent range. Operating margin is
projected to be between 46% and 47%. Earnings for 2013 are
expected to be in the range of $3.45 to $3.55 per share.
The Zacks Consensus Estimate for fiscal 2013 increased 9.1% to
$3.49 per share as most of the estimates were revised higher over
the last 60 days. The current estimate is within the guidance
range provided by Moody's. For fiscal 2014, the Zacks Consensus
Estimate increased 4.5% to $3.75 per share.
The long-term expected earnings growth rate for Moody's is
Other Stocks to Consider:
Investors can also consider other financial services providers
that are doing well right now. These include
Euronet Worldwide Inc. (
SS&C Technologies Holdings (
Fiserv Inc (
. While Euronet and SS&C Technologies carry a Zacks Rank #1
(Strong Buy), Fiserv carries a Zacks Rank #2 (Buy).
EURONET WORLDWD (EEFT): Free Stock Analysis
FISERV INC (FISV): Free Stock Analysis Report
MOODYS CORP (MCO): Free Stock Analysis Report
SS&C TECHNOLOGS (SSNC): Free Stock Analysis
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