Moody’s(MCO) ZACKS·2024-11-27 18:01Core Viewpoint - Moody's has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [3][5]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3]. Moody's Earnings Outlook - For the fiscal year ending December 2024, Moody's is projected to earn $12.07 per share, reflecting a 21.9% increase from the previous year [7]. - Over the past three months, the Zacks Consensus Estimate for Moody's has risen by 6.4%, indicating a positive trend in earnings expectations [7]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks which have averaged a +25% annual return since 1988 [6]. - Moody's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for higher returns in the near term [10].