10 Best Financial Stocks to Buy According to Billionaires

5. Moody’s Corporation (NYSE:MCO)

Number of Billionaire Investors: 20

Moody’s Corporation (NYSE:MCO) is a global firm specializing in risk assessment. It operates through two main divisions: Moody’s Analytics, providing risk management tools like credit research, economic data, and SaaS solutions for banking and insurance, and Moody’s Investors Service, which is responsible for credit ratings for corporate, financial, and government debt. MCO is one of the best financial stocks, as it is backed by 20 billionaire investors.

On January 13, Moody’s Corporation (NYSE:MCO) disclosed the acquisition of CAPE Analytics, a company specializing in geospatial AI for property risk assessment. They aim to combine CAPE’s AI analytics with Moody’s risk modeling, giving insurers and financial firms deeper insights into property risks, valuations, and natural hazard exposure. The deal is expected to close in early 2025, pending regulatory approvals.

Moody’s Corporation (NYSE:MCO) closed out 2024 with revenue jumping 20% for the year. Moody’s Investors Services (MIS) transactional revenue surged 54%, outpacing issuance growth, while Moody’s Analytics (MA) saw a 9% increase in annual recurring revenue, driven by high demand for workflow solutions. In Q4, revenue rose 8% year-over-year, with standout growth in Decision Solutions, particularly in Banking, Insurance, and Know Your Customer. Operating cash flow for the year hit $2.84 billion, with free cash flow amounting to $2.5 billion, fueled by solid revenue growth across the board. Looking ahead to 2025, the company expects revenue to grow in the high-single digits and forecasts adjusted diluted EPS between $14 and $14.5.

Moody’s Corporation (NYSE:MCO) increased its quarterly dividend by 11% to $0.94 per share, which was distributed to shareholders on March 14, 2025. In the fourth quarter of 2024, the company repurchased 1 million shares at an average price of $477.15 and issued a small number of shares through employee stock programs. By the end of 2024, the company had 180.3 million shares outstanding and $1.6 billion remaining in its share repurchase program, with no expiration date.