Fair Isaac (FICO) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - Fair Isaac (FICO) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook for its stock due to an upward trend in earnings estimates [1][3]. Earnings Estimates and Stock Price Impact - Changes in a company's earnings potential, reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements [4]. - Institutional investors often base their valuation models on earnings estimates, leading to significant buying or selling actions that affect stock prices [4]. Fair Isaac's Earnings Outlook - The Zacks Consensus Estimate for Fair Isaac indicates expected earnings of $29.52 per share for the fiscal year ending September 2025, with no year-over-year change [8]. - Over the past three months, analysts have raised their earnings estimates for Fair Isaac by 0.8% [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong track record of performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - The upgrade of Fair Isaac to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].