A month has gone by since the last earnings report for Fair Isaac (FICO) . Shares have lost about 7.6% in that time frame, underperforming the S&P 500.But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Fair Isaac due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Fair Isaac Corporation before we dive into how investors and analysts have reacted ...

Core Insights - Zacks Premium provides tools and resources for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores serve as complementary indicators to the Zacks Rank, helping investors identify stocks with high potential for market outperformance [2] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum characteristics, with A being the highest score indicating better chances of outperforming the market [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - Focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - Concentrates on a company's financial health and future growth potential, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - Targets stocks with upward or downward price trends, utilizing short-term price changes and earnings estimate revisions to identify buying opportunities [5] VGM Score - Combines all three Style Scores to provide a comprehensive rating, highlighting stocks with attractive value, strong growth forecasts, and promising momentum [6] Zacks Rank Integration - The Zacks Rank leverages earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.86% since 1988, significantly outperforming the S&P 500 [7] - There are over 800 stocks rated 1 or 2, making it essential for investors to utilize Style Scores to narrow down choices [8] Stock Recommendation: Fair Isaac Corporation (FICO) - FICO is currently rated 3 (Hold) with a VGM Score of B and a Growth Style Score of A, indicating a potential for growth with a forecasted year-over-year earnings growth of 40.2% for the current fiscal year [11] - Recent analyst revisions have increased the earnings estimate for fiscal 2026 by $1.96 to $41.89 per share, with an average earnings surprise of +6.9% [12] - With a solid Zacks Rank and strong Style Scores, FICO is recommended for investors' consideration [12]

Core Insights - The FICO UK Credit Card Market Report for December 2025 indicates that average credit card balances have reached the highest level since FICO began tracking this data, reflecting ongoing financial pressures on consumers [1] - There is a notable increase in the number of customers missing payments, with a month-on-month rise of 6.4% for those missing one payment and a 3.7% increase for those missing three payments [1] - The average active balance rose to £1,950, marking a 1.7% increase from November and a 4.8% increase year-on-year, highlighting affordability challenges for UK consumers [1] Spending and Payment Trends - Average credit card spending increased by 5.6% from November to December, reaching £830, although this figure is 3.5% lower than December 2024 [1] - The percentage of overall balance paid stabilized at 33.4%, which is a slight increase of 0.1% from November but a significant decrease of 6.8% year-on-year [1] - The average credit limit rose to £5,930, reflecting a 0.2% month-on-month increase and a 2.4% year-on-year increase [1] Customer Payment Behavior - The report indicates that 1.4% of accounts had one missed payment, a month-on-month increase of 6.4% and a year-on-year decrease of 4.3% [1] - Accounts with two missed payments accounted for 0.3%, showing a month-on-month decrease of 1.2% but a year-on-year increase of 3.1% [1] - The percentage of accounts with three missed payments rose to 0.2%, with a month-on-month increase of 3.7% and a year-on-year increase of 4.9% [1] Financial Stress Indicators - The persistent rise in average balances and low payment rates suggest continued financial stress for consumers, with expectations of increased payment rates in January as consumers focus on settling holiday spending [1] - The report emphasizes the need for risk teams to enhance monitoring of payment patterns and implement proactive intervention strategies in response to potential payment stress in early 2026 [1]

Core Insights - The article discusses the evolution of an investor's strategy over time, emphasizing the importance of understanding the underlying motivations for investing [1] Investment Strategy - The investor initially engaged in quick trades and arbitrage but found the experience to be inconsistent and stressful, leading to a reevaluation of their approach [1] - A focus on long-term investments is highlighted, with a commitment to hold stocks for at least 3 to 5 years unless there is a fundamental change in the company [1] - The investor aims to outperform the market while protecting against downside risks, which involves thorough research before making investment decisions [1] Research and Learning - The investor has studied the teachings of renowned investors such as Warren Buffett and Peter Lynch, integrating their insights into a personalized investment strategy [1] - Continuous research is emphasized as a critical component of developing and refining investment strategies, including exploring new techniques and potential future investments [1]

Core Insights - The individual has achieved an average annual return of approximately 15 percent and has built an investment portfolio worth $300,000 as of 2026 [1] - The initial investment strategy involved quick trades and arbitrage, which led to unpredictable losses and prompted a reevaluation of investment approach [1] - A focus on understanding the underlying motivations for investing, termed the "Why," is emphasized as crucial for developing a successful investment strategy [1] Investment Strategy - The investment strategy is influenced by the teachings of renowned investors such as Warren Buffett, Peter Lynch, and others, leading to the creation of a dynamic rule set [1] - The goal is to outperform the market while protecting against downside risks, which involves thorough research into potential investment opportunities [1] - A commitment to holding investments for a minimum of 3 to 5 years is established, unless there is a fundamental change in the company [1] Research and Development - Continuous research is deemed essential for refining investment strategies and identifying new opportunities [1] - The dynamic nature of research is highlighted, indicating that the investment landscape requires ongoing analysis of current holdings and potential future investments [1]

Core Insights - Grab Finance is enhancing credit access in Southeast Asia by utilizing the FICO Platform, implementing 22 decision workflows across six countries, and increasing credit offer eligibility rates by nearly 50% for its users [1][2] Company Overview - Grab Finance is the financial services division of Grab, a leading superapp in Southeast Asia, operating in sectors such as deliveries, mobility, and digital financial services, serving over 800 cities in eight countries [2] - The company aims to drive economic empowerment and financial inclusion for millions while maintaining a positive social impact and minimizing environmental footprint [2] Financial Inclusion Efforts - Grab Finance has been recognized with a 2026 FICO® Decision Award for its efforts in financial inclusion, having served over 46 million consumers and millions of merchants and drivers [1] - The company addresses the challenges of credit access in Southeast Asia, where over 700 million people face underbanked conditions, by leveraging behavioral data to create alternative risk models [1] Technological Implementation - The implementation of the FICO Platform allowed Grab Finance to automate credit eligibility assessments and deliver contextual, real-time credit offers, significantly improving access for underserved users [1] - The project was completed in under eight months, showcasing rapid deployment and the ability to navigate a fragmented regulatory landscape across different countries [1] Market Impact - Grab Finance's approach transforms everyday digital behavior into a "credit passport" for users previously invisible to traditional banking, thus contributing to economic transformation at scale [1] - The integration of compliance requirements into the credit decisioning framework demonstrates a strategic response to regional regulatory diversity [1]

Group 1 - The article recommends a buy rating for Fair Isaac Corporation (FICO) due to favorable pricing trends and the adoption of FICO 10T by lenders [1] - The investment approach emphasizes fundamentals-based value investing, focusing on companies with long-term durability and robust balance sheets [1] - There is a belief that while valuation is important, in certain situations, the potential for growth can outweigh immediate price concerns [1]

Core Insights - FICO World 2026 will feature Oz Pearlman, a renowned mentalist, who will demonstrate the importance of understanding customer behavior and decision-making [2][5] - The conference aims to bring together over 1,500 business leaders from more than 50 countries to discuss advancements in AI and customer management strategies [3][5] - FICO emphasizes the role of AI in transforming financial services and enhancing customer engagement through its software solutions [2][4] Company Overview - FICO, founded in 1956, is a leader in predictive analytics and data science, holding over 200 patents that enhance profitability and customer satisfaction across various industries [4][6] - The company’s solutions are utilized in over 80 countries, impacting areas such as fraud prevention and financial inclusion [4][6] - The FICO® Score is a widely recognized measure of consumer credit risk in the US, used by 90% of top lenders [4][6]

Core Insights - FICO has been recognized by Gartner in the 2026 Gartner® Critical Capabilities for Decision Intelligence Platforms [1] Company Summary - FICO is acknowledged for its capabilities in decision intelligence, indicating its strong position in the market [1]

Core Insights - The FICO UK Credit Card Market Report for November 2025 indicates that pre-Christmas spending was below 2024 levels, with rising balances and the lowest payment rates since 2021, highlighting financial stress among consumers [1] Spending Trends - Average credit card spending increased by 2.6% from October to November, reaching £785, but remained 2.4% lower year-on-year [1] - The percentage of customers using credit cards for cash withdrawals saw a significant decline of 12.3% month-on-month and 15.2% year-on-year [1] Payment and Balance Analysis - Payment rates dropped to 33.4%, down 2.8% from the previous month and 7.4% from November 2024, indicating increased financial strain [1] - Average active balances rose to £1,915, reflecting a monthly increase of 0.8% and an annual rise of 5% [1] Delinquency and Risk Indicators - The number of credit card accounts exceeding their limit increased by 6.4% month-on-month and 5.9% year-on-year [1] - Delinquent balances have grown across all categories, suggesting that customers missing payments are doing so with higher debt loads than in previous years [1] Strategic Recommendations - Risk and collections teams are advised to enhance monitoring for customers showing early signs of payment distress, especially as the holiday season approaches [1] - Effective account management should consider consumers' current financial situations and their capacity to manage existing and additional debt [1]