Wednesday, October 1, 2014

Will This Price Target Increase Help Moody's (MCO) Stock Today?

NEW YORK (TheStreet) -- Shares ofaMoody'sa were up 0.38% to $94.86 in morning trading Wednesday afteraBarclaysaincreased its price target on the stock to $107, increased its estimates and maintained an "overweight" rating. The firm saidabuybacks and acquisitions are boosting profits. Must Read: Warren Buffett's 25 Favorite Stocks STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Separately, TheStreet Ratings team rates MOODY'S CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation: "We rate MOODY'S CORP (MCO) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated." Highlights from the analysis by TheStreet Ratings Team goes as follows: MCO's revenue growth has slightly outpaced the industry average of 11.3%. Since the same quarter one year prior, revenues rose by 15.5%. Growth in the company's revenue appears to have helped boost the earnings per share. Powered by its strong earnings growth of 48.00% and other important driving factors, this stock has surged by 31.52% over the past year, outperforming the rise in the S&P 500 Index during the same period. 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 48.0% 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 ($4.01 versus $3.60). The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Diversified Financial Services industry average. The net income increased by 41.5% when compared to the same quarter one year prior, rising from $225.50 million to $319.20 million. 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. You can view the full analysis from the report here: MCO Ratings Report 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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