Moody’s Corporation (MCO): A Bull Case Theory

We came across a bullish thesis on Moody’s Corporation on Global Equity Briefing’s Substack by Ray Myers. In this article, we will summarize the bulls’ thesis on MCO. Moody’s Corporation’s share was trading at $481.65 as of June 25^th. MCO’s trailing and forward P/E were 41.63 and 36.23 respectively according to Yahoo Finance.

Moody’s holds a near-monopoly in the global credit ratings and financial risk assessment industry, positioning itself as an essential infrastructure provider to the world’s capital markets. Renowned for its credit ratings, risk analytics, and decision tools, the company plays a critical role in helping governments, investors, and financial institutions evaluate creditworthiness and allocate capital.

Moody’s services are not only deeply embedded in the financial system but are often mandated by regulators, reinforcing its indispensability. The business model is built on high-margin, subscription-based offerings that are difficult to displace, ensuring strong pricing power and recurring revenue visibility. With over $2 billion in annual profits, the company reinvests in acquisitions and innovation to broaden its moat and expand its global presence.

This disciplined capital allocation has allowed Moody’s to scale while maintaining profitability and defending its core business. The secular trend of global financialization, especially in underpenetrated emerging markets, provides a long growth runway as these regions gradually modernize and adopt robust credit systems. Despite the rise of alternative data providers and regulatory scrutiny, Moody’s dominant market share, entrenched client relationships, and mission-critical products offer durable competitive advantages.

The company’s ability to measure and standardize risk remains vital in increasingly complex global markets, positioning it as a beneficiary of structural trends in credit and finance. Given its resilient business model, stable cash flows, and significant barriers to entry, Moody’s is poised to remain a foundational force in finance for decades to come, offering investors both defensive strength and long-term growth potential.

Previously we covered a bullish thesis on Moody’s Corporation by Peter Thomason in May 2025, which highlighted its ratings oligopoly, high-margin model, and growing analytics business. The stock has appreciated ~2% since, as the thesis has played out. The thesis still stands as Moody’s moat holds firm. Ray Myers shares a similar view but focuses on its global infrastructure relevance.

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Disclosure: None. This article was originally published at Insider Monkey.