MCO - The Risk Of A Global Deleveraging For Moody's Corporation

2024-02-20 07:26:31 ET

Summary

• Moody's Corporation reported positive annual and quarterly results with revenue and operating income growing.
• Investors were disappointed due to the issued guidance for fiscal 2024, which is expecting earnings per share to stagnate or maybe even decline.
• There are long-term risks associated with global deleveraging, but Moody's is expected to maintain its dominant position in the market.

It has been quite some time since I covered Moody's Corporation (MCO). In September 2022, I published my last article about the credit rating agency and back then, when the stock was trading for $250, I rated the stock with a "Hold" as I still saw further downside risk. That prediction not only turned out to be wrong and the total return in last one and a half years was 50%, I also hit the temporary bottom with my rather bearish article....

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