MSCI Stock Surges 6.3% With A 8-day Spree On Key Index Enhancements
MSCI (MSCI) stock hit day 8-day winning streak, with cumulative gains over this period amounting to a 6.3%. The company market cap has surged by about $2.6 Bil over the last 8 days, and currently stands at $45 Bil.
The stock has YTD (year-to-date) return of 1.1% compared to 17.4% for S&P 500. This calls for re-evaluation of stock’s valuation, and find out whether this is an opportunity, or a trap.
What Triggered The Rally?
[1] Multiple Index Structure Enhancements
- RTX Stock Pays Out $56 Bil – Investors Take Note
- Caterpillar Stock Hands $56 Bil Back – Worth a Look?
- Automatic Data Processing Stock Pulls Back to Support – Smart Entry?
- Is Wall Street Underestimating Paychex Stock’s Potential?
- Could Cash Machine Roper Technologies Stock Be Your Next Buy?
- NVIDIA Stock To $242?
- Global Industry Classification Standard (GICS) Changes Announced
- Multiple technical and methodology updates issued
- Impact: Sustained Buying Pressure, Increased Investor Confidence
Opportunity or Trap?
Below is our take on valuation.
There is not much to fear in MSCI stock given its overall Strong operating performance and financial condition. This is aligned with the stock’s High valuation because of which we think it is Fairly Priced (For details, see Buy or Sell MSCI).
But here is the real interesting point.
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Returns vs S&P 500
The following table summarizes the return for MSCI stock vs. the S&P 500 index over different periods, including the current streak:
| Return Period | MSCI | S&P 500 |
|---|---|---|
| 1D | 0.1% | -0.3% |
| 8D (Current Streak) | 6.3% | 1.6% |
| 1M (21D) | 4.1% | 1.4% |
| 3M (63D) | 3.3% | 3.7% |
| YTD 2025 | -1.1% | 17.4% |
| 2024 | 7.3% | 23.3% |
| 2023 | 22.9% | 24.2% |
| 2022 | -23.3% | -19.4% |
Gains and Losses Streaks: S&P 500 Constituents
There are currently 86 S&P constituents with 3 days or more of consecutive gains and 21 constituents with 3 days or more of consecutive losses.
| Consecutive Days | # of Gainers | # of Losers |
|---|---|---|
| 3D | 49 | 6 |
| 4D | 8 | 14 |
| 5D | 17 | 1 |
| 6D | 5 | 0 |
| 7D or more | 7 | 0 |
| Total >=3 D | 86 | 21 |
Key Financials for MSCI (MSCI)
Last 2 Fiscal Years:
| Metric | FY2023 | FY2024 |
|---|---|---|
| Revenues | $2.5 Bil | $2.9 Bil |
| Operating Income | $1.4 Bil | $1.5 Bil |
| Net Income | $1.1 Bil | $1.1 Bil |
Last 2 Fiscal Quarters:
| Metric | 2025 FQ2 | 2025 FQ3 |
|---|---|---|
| Revenues | $772.7 Mil | $793.4 Mil |
| Operating Income | $425.2 Mil | $447.7 Mil |
| Net Income | $303.6 Mil | $325.4 Mil |
While MSCI stock looks attractive given its winning streak, investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.