Is Moody's Stock Underperforming the S&P 500?

Is Moody's Stock Underperforming the S&P 500?

Aritra Gangopadhyay

Fri, September 4, 2026 at 5:10 PM GMT+3 2 min read

• ^GSPC -0.38%

New York-based Moody's Corporation (MCO) operates as an integrated risk assessment firm in the United States, the rest of the Americas, and internationally. The company has a market cap of $87.3 billion and operates through two segments, Moody's Analytics (MA) and Moody's Investors Service (MIS).

Companies with a market cap of $10 billion or more are typically referred to as "large-cap stocks." MCO fits perfectly into that category, with its market cap exceeding this threshold and reflecting its substantial size and influence in the financial data and stock exchanges industry.

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Despite its strength, MCO stock slipped 8.5% from its 52-week high of $546.88, reached on Jan. 15. The stock is up 11.4% over the past three months, outperforming the S&P 500 Index's ($SPX) 2.6% rise during the same time frame.

However, the scenario changes in the longer term. The stock has grown marginally over the past 52 weeks, while SPX delivered 20.2% returns over the same time frame, outpacing MCO.

MCO has been trading above its 200-day and 50-day moving averages since July, with a couple of fluctuations.

On July 22, MCO announced the release of its better-than-expected Q2 2026 earnings. The company's revenue for the quarter rose 15.1% from the prior year's quarter to $2.2 billion and surpassed the Street's forecasts. Moreover, its adjusted EPS amounted to $4.68, also topping Wall Street's estimates. Moody's expects full-year earnings in the range of $16.50 to $17 per share.

When stacked against its peer, Nasdaq, Inc. (NDAQ), MCO has underperformed. Over the past year, NDAQ stock has grown 3%.

Wall Street currently has a somewhat bullish view of the stock. Among the 25 analysts tracking MCO, the overall consensus stands at a "Moderate Buy." Its mean price target of $562.83 offers a 14.5% upside potential from current prices.

On the date of publication, Aritra Gangopadhyay did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com