Core Insights - Moody's Corporation (MCO) has a market cap of $83.9 billion and operates through two segments: Moody's Analytics and Moody's Investors Service, providing credit ratings, data, analytics, and SaaS-based risk-management solutions [1] Stock Performance - Over the past 52 weeks, MCO shares have underperformed the broader market, declining slightly while the S&P 500 Index increased by 12.3% [2] - Year-to-date, MCO shares are also down compared to the S&P 500's 12.5% gain [2] - MCO shares have lagged behind the Financial Select Sector SPDR Fund's 2.7% rise over the same period [3] Financial Performance - Moody's reported Q3 2025 adjusted EPS of $3.92 and revenue of $2.01 billion, exceeding expectations [4] - The company raised its full-year outlook for adjusted EPS to between $14.50 and $14.75, projecting high-single-digit revenue growth [4] - The ratings business saw an 11% revenue increase, driven by strong bond issuance and tight credit spreads [4] Analyst Expectations - For the fiscal year ending December 2025, analysts expect Moody's adjusted EPS to grow by 17.4% year-over-year to $14.64 [5] - Moody's has a promising earnings surprise history, beating consensus estimates in the last four quarters [5] - Among 23 analysts covering the stock, the consensus rating is a "Moderate Buy," with 11 "Strong Buy" ratings, one "Moderate Buy," and 11 "Holds" [5] Price Target - Mizuho analyst Sean Kennedy raised Moody's price target to $550 while maintaining a "Neutral" rating [6] - The mean price target of $539 represents a 14.6% premium to MCO's current price levels [6] - The highest price target of $620 suggests a potential upside of 31.9% [6]

Baron Funds released its “Baron Durable Advantage Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund appreciated 5.6% (Institutional Shares) in the quarter compared to an 8.1% increase for the S&P 500 Index (the Index). YTD, the fund is up 13.6% compared to a 14.8% gain for the index. Three-quarters into 2025, U.S. large-cap equity investors are enjoying gains. The rally from the start of 2023 still looks strong in this quarter. In addition, you can check the fu ...

Core Viewpoint - S&P Global Inc. is considered one of the best long-term investment stocks, with a recent price target increase from $615 to $620 by Morgan Stanley, maintaining a Buy rating on the stock [1][2]. Financial Performance - The increase in the price target is attributed to strong issuance in the current quarter, leading to a 6% increase in EPS estimates for S&P Global [2]. - The company is expected to raise its full-year guidance during the fiscal third-quarter earnings call [2]. - S&P Global is projected to release its fiscal third-quarter results for 2025 on October 30, with management anticipating revenue growth of 5% to 7% and GAAP diluted EPS in the range of $14.35 to $14.60 [3]. Business Segments - S&P Global provides essential data, analytics, and insights across financial markets through five business segments: credit ratings, market intelligence, commodity pricing, automotive solutions, and global investment indices [4].

Core Insights - S&P Global and CME Group have completed the sale of OSTTRA to KKR for a total enterprise value of $3.1 billion, with both companies sharing the proceeds equally due to their 50/50 joint venture [1][2]. Group 1: Company Overview - OSTTRA was established in 2021 as a joint venture between CME Group and S&P Global, providing a comprehensive suite of post-trade offerings across various asset classes including interest rates, FX, credit, and equity [2]. - The services offered by OSTTRA include end-to-end connectivity and workflow solutions for banks, broker-dealers, asset managers, and other market participants, focusing on trade processing, lifecycle management, and optimization [2]. Group 2: Advisory Roles - Barclays and Davis Polk acted as financial and legal advisors to S&P Global during the transaction, while Citi and Skadden served in similar capacities for CME Group [3].

Core Insights - Moody's Corporation (MCO) is an integrated risk assessment firm with a market cap of $87.4 billion, providing credit ratings, research, data, and analytical tools [1] - The company is expected to announce its fiscal third-quarter earnings for 2025 on October 22, 2023 [1] Earnings Expectations - Analysts anticipate MCO to report a profit of $3.51 per share, reflecting a 9.4% increase from $3.21 per share in the same quarter last year [2] - For the full fiscal year, EPS is projected to be $13.92, an 11.6% increase from $12.47 in fiscal 2024, with further growth expected to $15.64 in fiscal 2026 [3] Stock Performance - MCO stock has underperformed the S&P 500 Index, which gained 17.4% over the past 52 weeks, with MCO shares only increasing by 4.1% during the same period [4] - The stock also lagged behind the Financial Select Sector SPDR Fund's 18% gains in the same timeframe [4] Recent Financial Results - In Q2, MCO reported revenue of $1.9 billion, a 4.5% year-over-year increase, with adjusted EPS rising 8.5% to $3.56 [5] Analyst Ratings - The consensus opinion on MCO stock is moderately bullish, with a "Moderate Buy" rating overall; 13 analysts recommend a "Strong Buy," 1 a "Moderate Buy," 10 a "Hold," and 1 a "Strong Sell" [6] - The average analyst price target for MCO is $542.19, indicating a potential upside of 10.6% from current levels [6]

Core Insights - S&P Global Inc. (NYSE:SPGI) is recognized as one of the 12 Best Dividend Aristocrat Stocks to invest in currently [1] - The company provides financial insights, credit ratings, market indices, and commodity pricing services, with a focus on credit quality ratings, benchmarks like the S&P 500, market analytics, and transparent commodity pricing [2] - S&P Global's stability is bolstered by recurring subscription-based revenues, with strategic priorities including AI-powered product development, growth in private markets data, and the addition of sustainability metrics [3] Financial Performance - S&P Global has a strong dividend history, having increased its payouts for 53 consecutive years, currently offering a quarterly dividend of $0.96 per share, resulting in a dividend yield of 0.79% as of September 26 [4]

Core Thesis - Moody's Corporation (MCO) is viewed as a compelling investment opportunity due to its strong market position and growth potential despite being recognized as a high-quality business [2][6] Business Segments - The company operates through two main segments: Moody's Investor Services (MIS), which contributes approximately 70% of EBITDA, and Moody's Analytics (MA), which accounts for about 30% [2] - MIS is the second-largest credit rating agency globally, with a market share exceeding 80% when combined with S&P Global [2] Financial Performance - MIS enjoys significant pricing power and margins near 60%, with revenue primarily driven by issuance [3] - Historical growth averages around 6% CAGR over multi-year periods, despite recent volatility due to the pandemic and interest rate cycles [3] - MA's subscription-based model generates over 95% recurring revenues and exhibits high-single-digit organic growth, providing a counterbalance to MIS's cyclicality [3] Growth Drivers - Long-term growth is supported by steady issuance volume growth, annual price increases, and a refinancing tailwind, with approximately $4.9 trillion of U.S. and EMEA corporate debt maturing over the next four years [4] - The company is expected to benefit from compounding price hikes and advancements in generative AI, which may lead to structural margin expansion [4] - Private credit, often seen as a threat, is emerging as a growth driver, with Moody's securing mandates and monetizing portfolio-level analytics [4] Future Outlook - EBITDA growth is projected to compound in the low double digits, with free cash flow per share expected in the mid-teens [5] - Consensus estimates may underestimate the durability of MCO's growth trajectory, with potential upside exceeding 50% over two years, even with modest multiple compression [5] - Key catalysts for growth include upcoming earnings reports and potential interest rate cuts in the second half of 2025 [5] Market Position - The company's entrenched duopoly and high cash generation provide a cushion against downside risks, supported by a history of opportunistic buybacks [5] - Despite a recent stock price depreciation of approximately 2.17%, the bullish thesis remains intact due to the company's strong market position and pricing power [6]

Core Viewpoint - S&P Global (SPGI) stock has experienced a significant decline of -9.8% over five consecutive days, raising concerns about client spending and competition in the financial information sector [1][2]. Group 1: Stock Performance - The firm has lost approximately $15 billion in market value, bringing its current market capitalization to around $150 billion [2]. - SPGI stock is currently 0.9% lower than its value at the end of 2024, while the S&P 500 has achieved year-to-date returns of 12.9% [2]. Group 2: Market Context - The decline in SPGI stock follows weak earnings reported by rival FactSet, which has heightened concerns regarding a slowdown in client spending [1]. - There are currently 64 S&P constituents that have recorded three or more consecutive days of losses, indicating a broader trend of weakness in the market [6]. Group 3: Company Overview - S&P Global provides credit ratings, benchmarks, analytics, and workflow solutions across various markets, including capital, commodity, and automotive sectors [4]. - The current losing streak of SPGI stock has not instilled confidence among investors, contrasting with the performance of the Trefis High Quality (HQ) Portfolio, which has historically outperformed its benchmarks [7].

Core Insights - S&P Global Inc. is recognized as one of the 13 Best Consistent Dividend Stocks to buy now, highlighting its strong position in the market [1] Group 1: Company Overview - S&P Global Inc. is a New York-based financial information and analytics company, known for its irreplaceable assets such as the S&P 500 index, credit ratings, and commodity benchmarks [2] - The company's business model generates steady, subscription-like revenues with minimal capital requirements, making it resilient during market volatility [2] Group 2: Technological Advancements - S&P Global is leveraging AI through its Kensho division, acquired for $550 million in 2018, to enhance productivity and workflow efficiency across its operations [3] Group 3: Dividend Performance - S&P Global has a strong dividend track record, having increased its payouts for 53 consecutive years, which positions it as a reliable source of consistent income [4] - As of September 12, the stock has a dividend yield of 0.71%, further emphasizing its attractiveness to income-focused investors [4]

Core Insights - S&P Global reported its second quarter results for 2025, with earnings release and supplemental materials available for review [1] Group 1: Earnings Results - The company's senior management will discuss the second quarter 2025 earnings results during a conference call scheduled for July 31 at 8:30 a.m. EDT [2] - Additional information from the conference call and supplemental slide content can be accessed on the company's Investor Relations website [2] Group 2: Company Overview - S&P Global provides essential intelligence, enabling governments, businesses, and individuals to make informed decisions through data, expertise, and technology [4] - The company is recognized for offering credit ratings, benchmarks, analytics, and workflow solutions across global capital, commodity, and automotive markets [5]