With Moodys Stock Sliding, Have You Assessed The Risk?
Moodys (MCO) stock is down 9.4% in 21 trading days. The recent slide reflects renewed concerns around broader financial market volatility and a key peer’s weaker guidance, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Moodys stands today.
- Size: Moodys is a $83 Bil company with $7.7 Bil in revenue currently trading at $466.10.
- Fundamentals: Last 12 month revenue growth of 8.9% and operating margin of 44.9%.
- Liquidity: Has Debt to Equity ratio of 0.09 and Cash to Assets ratio of 0.15
- Valuation: Moodys stock is currently trading at P/E multiple of 33.7 and P/EBIT multiple of 24.3
- Has returned (median) 56% within a year following sharp dips since 2010. See MCO Dip Buy Analysis.
These metrics point to a Strong operational performance, alongside High valuation – making the stock Fairly Priced. For details, see Buy or Sell MCO Stock
That brings us to the key consideration for investors worried about this fall: how resilient is MCO stock if markets turn south? This is where our downturn resilience framework comes in. Suppose MCO stock falls another 20-30% to $326 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
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2022 Inflation Shock
- MCO stock fell 42.2% from a high of $406.69 on 28 October 2021 to $235.25 on 14 October 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 15 May 2024
- Since then, the stock increased to a high of $539.61 on 15 January 2026 , and currently trades at $466.10
| MCO | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -42.2% | -25.4% |
| Time to Full Recovery | 579 days | 464 days |
2020 Covid Pandemic
- MCO stock fell 42.1% from a high of $285.31 on 19 February 2020 to $165.09 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 7 July 2020
| MCO | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -42.1% | -33.9% |
| Time to Full Recovery | 106 days | 148 days |
2018 Correction
- MCO stock fell 30.8% from a high of $187.02 on 25 July 2018 to $129.35 on 24 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 5 April 2019
| MCO | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -30.8% | -19.8% |
| Time to Full Recovery | 102 days | 120 days |
2008 Global Financial Crisis
- MCO stock fell 79.1% from a high of $74.84 on 8 February 2007 to $15.63 on 20 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 15 November 2013
| MCO | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -79.1% | -56.8% |
| Time to Full Recovery | 1,821 days | 1,480 days |
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