Company Overview - Fair Isaac (FICO) currently has a Momentum Style Score of B, indicating a positive outlook based on its price changes and earnings estimate revisions [3][10] - The company has a Zacks Rank of 2 (Buy), which suggests it is expected to outperform the market [4][10] Performance Metrics - FICO shares have increased by 1.34% over the past week, while the Zacks Computers - IT Services industry has decreased by 2.66% during the same period [6] - Over the past month, FICO's price change is 5.54%, compared to the industry's 1.63% [6] - In the last quarter, FICO shares have risen by 22.17%, and over the past year, they have gained 139.03%, significantly outperforming the S&P 500, which increased by 7.12% and 43.49% respectively [7] Trading Volume - FICO's average 20-day trading volume is 148,054 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, two earnings estimates for FICO have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from $23.62 to $23.79 [10] - For the next fiscal year, two estimates have also moved upwards with no downward revisions [10]

Core Viewpoint - The article highlights the investment potential in Fair Isaac Corporation (FICO), emphasizing its strong financial performance and growth prospects despite its high price-to-earnings (P/E) ratio compared to other tech stocks like Nvidia [1][5][6]. Company Overview - Fair Isaac developed the FICO score, a key credit scoring product used by nearly all U.S. lenders, with scores above 670 considered good and above 800 exceptional [2]. - The company generated nearly $594 million in operating income over the last nine months, achieving an impressive 89% operating margin [3]. Financial Performance - Fair Isaac's software-as-a-service (SaaS) business, which leverages data and AI, has clients in over 100 countries and reported a 32% operating margin [4]. - Analysts predict that Fair Isaac may increase its mortgage credit score fees from $3.50 to $5 in 2025, potentially raising revenue by $200 million, or 11% [3]. Growth Strategy - The company aims to enhance client engagement by consolidating its software solutions onto a single platform, which is expected to improve sales efficiency and operating margins [5]. - Fair Isaac has delivered remarkable returns, with a 78% increase this year and 568% over the last five years, leading to heightened investor interest [5]. Valuation Considerations - Despite a high P/E ratio of 106, Fair Isaac's combination of a legacy business and a growing SaaS and AI segment positions it well for future growth [6]. - The potential for increased revenue from higher fees for FICO scores could positively impact the company's bottom line and reduce the elevated P/E ratio over time [6]. Investment Outlook - There is a favorable view on initiating a position in Fair Isaac, as it is considered one of the best-performing companies in the S&P 500 from an operational standpoint [7].

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Fair Isaac (FICO) identified as a strong candidate due to its favorable growth metrics and Zacks Rank [1] Group 1: Earnings Growth - Fair Isaac has a historical EPS growth rate of 26.1%, with projected EPS growth of 25.2% for the current year, significantly outperforming the industry average of 6.7% [3] Group 2: Cash Flow Growth - The year-over-year cash flow growth for Fair Isaac stands at 5.4%, which is notably higher than the industry average of -14%. The company's annualized cash flow growth rate over the past 3-5 years is 20.3%, compared to the industry average of 7.5% [4] Group 3: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Fair Isaac, with the Zacks Consensus Estimate for the current year increasing by 0.3% over the past month. This trend contributes to its Zacks Rank of 2 and a Growth Score of B [5]

Fair Issac's (FICO) shares have outperformed the Zacks Computer & Technology sector and Zacks IT Services industry peers Infosys (INFY) and ServiceNow (NOW) in the year-to-date period. While FICO has surged 74.5%, Infosys has risen 24.7% and ServiceNow has gained 32.8%. The broader sector has appreciated 25.5% over the same timeframe. The robust stock price performance can be attributed to the strong performance in its Scores and Software segments which led to significant growth in its clientele and driven ...

Back on May 15, Representative Josh Gottheimer of New Jersey's 5th congressional district disclosed an April 29 purchase of $1,001 to $15,000 in Fair Isaac Corporation (NYSE: FICO) shares — since then, FICO stock has been on a rapid, sustained rise, posting a 70% rally, reigniting discussion as to whether public officials should be permitted to trade specific stocks. The purchase is certainly timely — a fact not helped by Gottheimer's membership on the House Financial Services Committee, responsible for fin ...

Traced back to 2022, Fair Isaac Corporation (FICO, Financial)'s stock price has creeped from $400s in 2022 to almost $2000 in 2024. And predicted there will be more firing after the rate cut. What is this company really about? Fair Isaac Corporation is a predictive analytics and decision management software company that has two contributing segments: Scores and Software as simply depicted by GuruFocus below: Fair Isaac Corp's 2023-09 Operating Revenue by Business Segment Scores ● Software Oct 07, 2024 Power ...

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, particularly in the financial sector, to achieve exceptional returns. However, identifying such stocks can be challenging due to the inherent risks and volatility associated with them [1]. Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing a company's actual growth prospects beyond traditional metrics. Fair Isaac (FICO) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2]. - Research indicates that stocks with strong growth features consistently outperform the market, especially those with a Growth Score of A or B and a Zacks Rank of 1 (Strong Buy) or 2 (Buy) [3]. Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth being particularly attractive as it signals strong future prospects. Fair Isaac has a historical EPS growth rate of 26.1%, with projected EPS growth of 25.6% this year, significantly surpassing the industry average of 6.3% [4]. Group 3: Cash Flow Growth - Cash flow growth is essential for growth-oriented companies, allowing them to expand without relying on external funding. Fair Isaac's year-over-year cash flow growth stands at 5.4%, outperforming many peers and contrasting with the industry average of -14% [5]. - The historical annualized cash flow growth rate for Fair Isaac over the past 3-5 years is 20.3%, compared to the industry average of 8% [6]. Group 4: Earnings Estimate Revisions - Trends in earnings estimate revisions are indicative of a stock's potential performance, with positive revisions correlating strongly with stock price movements. Fair Isaac's current-year earnings estimates have been revised upward, with the Zacks Consensus Estimate increasing by 1.6% over the past month [7][8]. Group 5: Investment Positioning - The combination of favorable earnings estimate revisions and a solid Growth Score positions Fair Isaac well for potential outperformance, making it an attractive option for growth investors [9].

Fair Isaac Corporation (NYSE: FICO ) is one of those compounding marvels of the investment world that's up ~19500% (close to a 200X) since March 2009. If that time frame sounds exhaustive, it's up ~1000% from January 2019, a 10x. So the question is: why are not more people talking about Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it exp ...

Fair Issac's (FICO) shares have outperformed the Zacks Computer & Technology sector and its Zacks IT Services industry peers Infosys (INFY) and ServiceNow (NOW) on a year-to-date (YTD) basis. While FICO has surged 49%, Infosys has risen 16.7% and ServiceNow has increased by 16.8%. The broader sector has appreciated 12.5% over the same timeframe. The robust stock price performance can be attributed to the strong adoption of the FICO Platform and FICO Score, which led to significant growth in its clientele an ...

Core Viewpoint - Fair Isaac (FICO) reported mixed financial results for Q3 fiscal 2024, with earnings per share missing estimates but revenues showing year-over-year growth. The company has seen an 8.5% increase in share price since the last earnings report, outperforming the S&P 500, raising questions about future performance leading up to the next earnings release [1][2]. Financial Performance - Q3 fiscal 2024 earnings were $6.25 per share, missing the Zacks Consensus Estimate by 1.88%, but up 10.4% year over year [2]. - Revenues reached $448 million, a 12.3% increase year over year, but slightly below the consensus mark by 0.15% [2]. - Revenue contributions came from the Americas (85%), EMEA (10%), and Asia Pacific (5%) [2]. Revenue Breakdown - Software revenues increased 5% year over year to $206.4 million, with Software Annual Recurring Revenues (ARR) growing 10% year over year [3]. - On-premises and SaaS software revenues, accounting for 41% of total revenues, rose 6.8% year over year to $183.8 million [4]. - Scores, which represent 53.9% of revenues, increased 19.7% year over year to $241.5 million [4]. Segment Performance - B2B revenues grew 27% year over year, primarily due to unit price increases, while B2C revenues fell 2% due to lower volumes on myFICO.com [5]. - Mortgage originations revenues surged 80%, making up 49% of B2B revenues and 39% of total scores revenues [5]. - Auto originations revenues decreased by 3% year over year, and credit card and personal loan revenues declined by 7% [5]. Operating Metrics - Research & development expenses as a percentage of revenues decreased by 50 basis points to 9.9% year over year [6]. - Selling, general and administrative expenses increased by 80 basis points to 27.9% year over year [6]. - Operating margin contracted by 190 basis points to 42.5% in the reported quarter [6]. Balance Sheet and Cash Flow - As of June 30, 2024, FICO had $156 million in cash and cash equivalents and total debt of $2.11 billion, compared to $135.7 million in cash and $2.04 billion in debt as of March 31, 2024 [7]. - Cash flow from operations was $213.3 million in Q3, up from $71.04 million in the previous quarter, while free cash flow decreased to $20.5 million from $61.6 million [7]. Share Repurchase and Guidance - In Q3, FICO repurchased 196,000 shares and announced a new Board authorization for $1 billion in share repurchases [8]. - For fiscal 2024, FICO anticipates revenues of $1.7 billion and non-GAAP earnings projected at $23.16 per share [9]. Market Position and Outlook - Fair Isaac holds a Zacks Rank 4 (Sell), indicating expectations of below-average returns in the coming months [12]. - The company is part of the Zacks Computers - IT Services industry, which has seen mixed performance among peers, such as Roper Technologies, which reported a 12.1% year-over-year revenue increase [13].