Should I Buy Moody's (MCO)? Finance YouTuber Analysis

The YouTuber highlights Moodis as a strong business due to its oligopoly in debt rating, high profitability, and protection against inflation. He notes its consistent 9% growth, margin expansion, and share buybacks, leading to a 16% annual value creation. The current valuation is attractive, trading below its historical average, making it a good long-term investment.

“Moodis es muy sencillo, crece al 9% y lo puede mantener los próximos 10, 20 años tranquilamente. Hace un poquito de expansión de márgenes porque cada vez va cobrando más dinero por esos servicios. Recompra acciones a un ritmo del 3 4% anual y eso da una creación de valor del 16% todos los años.”

Carlson maintains a 'hold' on Moody's, citing its strong earnings beat and raised free cash flow estimates. He emphasizes the recovery in its Investor Services segment due to increased corporate debt issuance and the stable, growing subscription revenue from Moody's Analytics, positioning it as a high-quality company benefiting from long-term secular trends.

“I think Moody's is going to continue to do well as there's more and more debt in the future and data becomes more valuable.”