From Nasdaq, Inc.: 2025-04-26 08:30:00

Moody’s (NYSE: MCO) reported an 8% increase in quarterly revenue and a 14% rise in adjusted earnings per share for the period ending March 31, beating Wall Street estimates. However, a lower full-year profit forecast caused a 19% drop in the stock price from its 52-week high. Moody’s strong fundamentals include record earnings and revenue in the first quarter, driven by growth in its Moody’s Investor Service and Analytics segments. Despite a more cautious outlook and a lowered revenue growth estimate for 2025, Moody’s remains profitable with a solid financial position. Shares, however, may be overvalued at this time.

Moody’s stock is trading at a premium, with a price-to-earnings ratio of 38, above its five-year average. While current shareholders may find reasons to hold onto the stock, potential investors might want to explore other opportunities in the market that offer better value and growth prospects. The Motley Fool Stock Advisor team did not include Moody’s in its list of 10 best stocks to buy now. The team’s recommendations in the past have generated significant returns, outperforming the S&P 500. Consider exploring other investment options before committing to Moody’s stock.



Read more at Nasdaq, Inc.: Is Moody’s Stock a Buy Now?