Valued at a market cap of $42.1 billion, MSCI Inc. (MSCI) provides critical decision support tools and solutions for the investment community to manage investment processes. The New York-based company offers various investment decision support tools, including indexes; portfolio construction and risk management products and services; Environmental, Social, and Governance (ESG) research and ratings; and real estate research, reporting, and benchmarking.

Companies worth $10 billion or more are typically classified as “large-cap stocks,” and MSCI fits the label perfectly, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the financial data & stock exchanges industry. The company’s strong data-driven insights, innovative factor-based investing models, and advanced portfolio analytics reinforce its competitive edge in asset management, helping clients navigate complex financial markets with precision. 

Despite its notable strength, this capital markets company’s shares are currently trading 15.2% below its 52-week high of $642.45, reached on Dec. 12. Moreover, MSCI stock has declined 14.3% over the past three months, lagging behind the broader S&P 500 Index’s ($SPX) 7.5% dip during the same time frame.

In the longer term, MSCI has fallen 3.7% over the past 52 weeks, underperforming SPX’s 8.2% return. Moreover, on a YTD basis, shares of MSCI are down 9.2%, compared to SPX’s 4.8% decline over the same time frame. 

To confirm its bearish trend, MSCI began trading below its 200-day moving average recently in March and has remained under its 50-day moving average since late January. 

On Jan. 29, shares of MSCI plunged 5.6% after its mixed Q4 earnings release. The company posted adjusted earnings of $4.18 per share, which grew 13.6% year over year and exceeded Wall Street’s expectations of $3.96. However, on the other hand, its revenue grew 7.7% annually to $743.5 million but marginally fell short of the estimates. The shortfall was primarily due to a decline in non-recurring revenues, mainly within the Index segment, which somewhat affected its otherwise strong performance. 

MSCI’s underperformance looks even more pronounced when compared to its rival, Intercontinental Exchange, Inc. (ICE), which gained 23.4% over the past 52 weeks and 13.4% on a YTD basis. 

Despite MSCI’s recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 19 analysts covering it, and the mean price target of $663.07 suggests a massive 21.6% premium to its current levels.