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S&P Global, MSCI, and Moody's Named Top Picks by Wolfe Research Ahead of Earnings

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Jul 17, 20262 min read
S&P Global, MSCI, and Moody's Named Top Picks by Wolfe Research Ahead of Earnings

Summary

Wolfe Research has identified S&P Global, MSCI Inc., and Moody's Corporation as its top selections in the Business and Information Services sector, citing expectations for strong second-quarter results and assigning 'Outperform' ratings to all three.

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Wolfe Research highlighted its top stock picks in the Business and Information Services sector, naming S&P Global (SPGI), MSCI Inc. (MSCI), and Moody’s Corporation (MCO) as its favored equities. The firm issued an "Outperform" rating for all three companies, anticipating a strong upcoming second-quarter 2026 earnings season.

The Top Selections

Analysts at Wolfe expressed varying degrees of conviction but maintained a positive outlook on the financial data and analytics giants, projecting that each will outperform consensus estimates for the quarter.

MSCI Inc. (MSCI)

MSCI was designated as the firm's highest-conviction pick. Wolfe analysts are tactically positive on the stock heading into its earnings report, citing sustainable momentum in its Index business and expected outperformance in Analytics and ESG.

  • Rating: Outperform
  • Price Target: $710 (year-end 2026)
  • Valuation Basis: Approximately 31 times its 2027 adjusted EPS estimate of $22.93.
  • Q2 '26 Estimates: Wolfe models revenue of $876 million and EPS of $5.01, ahead of consensus estimates of $867 million and $4.96, respectively.

S&P Global (SPGI)

Despite S&P Global's shares declining 11% year-to-date, Wolfe remains constructive on the name. The firm pointed to strong quarter-to-date billed issuance data, which contrasts with the company's conservative guidance, suggesting a potential guidance raise is more likely for S&P Global than for its peer, Moody's.

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  • Rating: Outperform
  • Price Target: $515 (year-end 2026)
  • Valuation Basis: Approximately 23 times its 2027 adjusted EPS estimate of $22.48.
  • Q2 '26 Estimates: Wolfe forecasts total revenue of $4.12 billion and adjusted EPS of $5.02, about 2% above Street expectations.

Moody's Corporation (MCO)

Wolfe is "modestly constructive" on Moody's, expecting topline strength driven by its Moody’s Investors Service segment and solid margin performance. However, analysts see less room for the company to raise its full-year guidance compared to S&P Global.

  • Rating: Outperform
  • Price Target: $550 (year-end 2026)
  • Valuation Basis: Approximately 29 times its 2027 adjusted EPS estimate of $18.96.
  • Q2 '26 Estimates: The firm projects revenue of $2.15 billion and adjusted EPS of $4.37, surpassing consensus figures of $2.08 billion and $4.22.

Market Implications

This analyst note provides a bullish outlook for key players in the financial information services industry ahead of their quarterly reports. The price targets, based on 2027 earnings estimates, reflect a long-term positive view on the sector's growth prospects. For investors, Wolfe's analysis suggests that underlying business fundamentals for these companies, particularly in ratings and indices, remain robust despite broader market factors like capital rotation that have impacted stock performance this year.

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