MSCI Stock Near Crucial Support – Buy Signal?
MSCI (MSCI) stock should be on your watchlist. Here is why – it is currently trading in the support zone ($534.60 – $590.88), levels from which it has bounced meaningfully before. In the last 10 years, MSCI stock received buying interest at this level 3 times and subsequently went on to generate 15.3% in average peak returns.
| Peak Return | Days to Peak Return | |
|---|---|---|
| 7/16/2021 | 19.9% | 123 |
| 7/23/2024 | 17.1% | 142 |
| 4/9/2025 | 8.8% | 202 |
Yet, a support zone alone isn’t enough; rebounds are more likely when fundamentals, sentiment, and market conditions line up. How does that look for MSCI?
Rebound Likely
MSCI’s Q3 2025 EPS exceeded estimates, coupled with strong organic revenue growth in its core index segment. Analyst consensus remains “Buy” with an average price target indicating double-digit upside from current levels, despite recent market underperformance. The financial analytics sector enjoys strong tailwinds from AI integration, cloud adoption, and rising demand for risk management and real-time insights, underpinning MSCI’s recurring, high-margin business model. Leadership transition and index adjustments are routine and not expected to disrupt this trajectory.
How Do MSCI Financials Look Right Now?
- Revenue Growth: 9.0% LTM and 11.2% last 3-year average.
- Cash Generation: Nearly 45.4% free cash flow margin and 54.2% operating margin LTM.
- Recent Revenue Shocks: The minimum annual revenue growth in the last 3 years for MSCI was 7.9%.
- Valuation: MSCI stock trades at a PE multiple of 35.2
| MSCI | S&P Median | |
|---|---|---|
| Sector | Financials | – |
| Industry | Financial Exchanges & Data | – |
| PE Ratio | 35.2 | 23.6 |
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| LTM* Revenue Growth | 9.0% | 6.1% |
| 3Y Average Annual Revenue Growth | 11.2% | 5.4% |
| Min Annual Revenue Growth Last 3Y | 7.9% | 0.2% |
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| LTM* Operating Margin | 54.2% | 18.8% |
| 3Y Average Operating Margin | 54.1% | 18.2% |
| LTM* Free Cash Flow Margin | 45.4% | 13.5% |
*LTM: Last Twelve Months | For more details on MSCI fundamentals, read Buy or Sell MSCI Stock.
And What If The Support Breaks?
The MSCI index isn’t immune to drops, even with strong fundamentals. During the Global Financial Crisis, it plunged nearly 69%. The 2018 correction and Covid pandemic triggered declines of about 26% and 32%, respectively. The inflation shock wasn’t mild either, dragging it down around 44%. So, no matter the setup, sharp pullbacks happen. It’s a reminder that risk is always baked in, even for broad market measures.
Still not sure about MSCI stock? Consider the portfolio approach.
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