Moody's Trades at 37 Times Earnings Ahead of July 22 Report; Analyst Questions Premium Valuation
Moody's (NYSE: MCO), a leading provider of financial data, analytics, and credit rating services, is trading at 37 times trailing earnings, above the S&P 500's 32 times multiple. The stock has remained nearly flat year-to-date, underperforming the broader market. Ahead of its second-quarter earnings report on July 22, 2026, the article examines whether the wide-moat company is worth its premium valuation. Moody's expects high single-digit revenue growth for 2026, with adjusted EPS rising 10%-14%, and plans $2.5 billion in buybacks. However, potential interest rate hikes in the second half of 2026 could pressure its credit rating business. The company is integrating AI features via AWS and Microsoft Copilot to maintain its competitive edge. The Motley Fool analyst advises waiting for the earnings report to assess macro conditions and AI monetization before investing.
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