Why Moody's Is Poised to Pull Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, credit rating agency Moody's (NYSE: MCO  ) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Moody's and see what CAPS investors are saying about the stock right now.

Moody's facts

Headquarters (founded)

New York, N.Y. (1900)

Market Cap

$13.4 billion

Industry

Specialized finance

Trailing-12-Month Revenue

$2.7 billion

Management

CEO Raymond McDaniel, Jr. (since 2005)
CFO Linda Huber (since 2005)

Return on Capital (average, past 3 years)

52.3%

Cash / Debt

$1.8 billion / $1.7 billion

Dividend Yield

1.5%

Competitors

Dun & Bradstreet
Fitch Ratings
Standard & Poor's

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 11% of the 192 members who have rated Moody's believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those bears, fellow Fool Jason Moser (TMFJMo), succinctly summed up the underperform case for our community:

Scary part is this could very well outperform given our unfortunate dependence on these ratings agencies. Still, long term money will fare better elsewhere, too much "black box" and not enough transparency in this biz. Plus, I just gave it the red thumb of death on Investor Beat today, so I'm sticking with my guns.

If you want market-topping returns, you need to protect your portfolio from any undue risk. Luckily, we've found a growth play we are incredibly excited about -- excited enough to dub it "The Only Stock You Need to Profit from the NEW Technology Revolution." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.



Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2397017, ~/Articles/ArticleHandler.aspx, 10/21/2014 3:08:14 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement