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Fair Isaac Corporation (FICO), founded in 1956 and headquartered in Bozeman, Montana, is a leading global analytics and decision management solutions provider. With a market cap of $52.1 billion, FICO specializes in leveraging data science and advanced analytics to help businesses make smarter decisions and drive growth.
Companies with a market value of $10 billion or more are classified as “large-cap stocks,” Fair Isaac is a key player in this category. FICO’s global presence and focus on innovation establish it as a leader in helping businesses make data-driven decisions, manage risk, and optimize performance, driving long-term success in a rapidly evolving market.
Fair Isaac’s shares are currently trading 14.6% below its 52-week high of $2,402.51, reached on Nov. 13. The stock has gained 7.9% over the three months, outperforming the broader S&P 500 Index’s ($SPX) 4.5% gains during the same time frame.
Over the long term, FICO has returned 76.2% on a YTD basis, significantly outperforming the SPX's return of 23.1%. Similarly, over the past 52 weeks, FICO rose 78.6%, surpassing the SPX's growth of 23.9% during the same period.
The stock has consistently traded above its 200-day moving average over the past year, indicating a bullish trend. However, it has recently traded below the 50-day moving average.
Fair Isaac has recently outperformed the broader index, driven by heightened demand for its credit-scoring services within the financial sector. This momentum is likely to persist as lenders increasingly prioritize accurate risk assessment tools to navigate ongoing economic uncertainties.
The company reported its Q4 earnings on Nov. 6, with shares rising over 4% in the following trading session. Its adjusted EPS amounted to $6.54, reflecting a 30.5% year-over-year increase but falling short of Wall Street's expectation of $6.60. Revenue grew by 16.4% to $453.8 million, slightly below analysts' forecast.
The company’s fiscal 2025 guidance forecasts revenues of $1.98 billion. Non-GAAP net income is expected to be at $712 million, equating to non-GAAP EPS of $28.58.
FICO's competitor, Autodesk, Inc. (ADSK), has underperformed in comparison. ADSK stock has gained 20.3% in 2024 and 22.5% over the past 52 weeks.
Given FICO's outperformance, analysts maintain a cautiously optimistic outlook on the stock's prospects. Of the 13 analysts covering it, the consensus rating is “Moderate Buy,” with a mean price target of $2,305.92, indicating a potential upside of 12.4% from its current level.
