Moody's Trades at 37 Times Earnings Ahead of July 22 Report

Moody's (NYSE: MCO) is trading at 37 times its trailing earnings, compared to the S&P 500's 32 times earnings, indicating it may be historically expensive. Year-to-date, Moody's stock performance has been flat, underperforming the S&P 500's 9% gain. The company expects its revenue to grow by high single digits in 2026, with adjusted EPS rising 10%-14%. Investors should be aware of potential interest rate hikes in late 2026, which may affect Moody's credit rating services and impact its stock valuations.