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Valued at $35.5 billion by market cap, Montana-based Fair Isaac Corporation (FICO) enhances business decision-making capabilities through its innovative enterprise decision management solutions and technologies. These tools empower companies to automate processes and infuse greater intelligence into every customer interaction.
Companies valued at $10 billion or more are generally classified as "large-cap" stocks and Fair Isaac fits this criterion perfectly. Since 1956, FICO has pioneered technologies to enhance operational decisions, holding over 215 patents that drive profitability and growth across various industries. The company’s solutions protect 2.6 billion payment cards, boost financial inclusion, and strengthen supply chains in over 100 countries. The FICO® Score, trusted by 90% of top US lenders, sets the standard for consumer credit risk and is available in more than 40 countries, enhancing credit access and transparency worldwide.
Despite the slight pullback from its 52-week high of $1451.78, hit on May 20, shares of Fair Isaac have showcased resilience, surging nearly 12.9% over the past three months, outpacing the broader S&P 500 Technology Sector SPDR’s (XLK) 6% gain over the same time frame.
Over the longer term, FICO is up 23.8% on a YTD basis, easily overshadowing the XLK’s 15.6% gains. Moreover, shares of FICO have surged nearly 85.8% over the past 52 weeks, compared to the XLK’s 31.9% returns during the same period.
To confirm the bullish price trend, the stock has been trading consistently above its 200-day moving average since June last year and has also remained above its 50-day moving average during this period despite some fluctuations.
Fair Isaac’s relative outperformance stems from strong brand recognition, steady financial health, and strategic management of operating expenses. Moreover, its flagship product, FICO Score, has been pivotal in driving the company’s growth so far. On April 25, Fair Isaac revealed its Q2 earnings results, which topped Wall Street forecasts on both the top and bottom lines. Following this, the company ended most of its sessions in green.
Also, FICO’s rival Envestnet, Inc. (ENV) has outperformed FICO on a YTD basis, with a 26.8% return. However, FICO’s return over the past 52 weeks easily dwarfs ENV’s gain of about 15% during the same period.
Despite FICO’s relatively strong price action, analysts remain cautiously optimistic about its prospects. Among the 10 analysts covering the stock, there is a consensus rating of “Moderate Buy,” and it is currently trading above the mean price target of $1334.
On the date of publication, Anushka Mukherjee did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
