Short Squeeze Target #3: Moody’s (MCO)
Click to Enlarge Credit rating giant Moody’s (MCO) has been a company of interest for us for some time. The company’s fundamental story remains strong as investors continue to seek guidance on debt issuance in a market that has been tough to navigate.
Moody’s earnings results reflect this strength, as the company has bested analyst expectations by an average of 10% over the last four quarters. Those results have helped propel the stock to gains of 45% during the past year.
Despite the strength, the shorts are betting against MCO stock yet again. We love the recent pullback to the stock’s 50-day moving average as an entry before the stock heads back to new high territory, which will of course get the shorts running back to the market as buyers to cover their position.
As of this writing, Johnson Research Group did not hold a position in any of the aforementioned securities.