FICO’s Strong Performance in Analytics Reigns Amid Market Challenges
Founded in 1956, Fair Isaac Corporation (FICO) is a top global provider of analytics and decision management solutions. Based in Bozeman, Montana, FICO boasts a market cap of $52.1 billion. The company utilizes data science and advanced analytics to assist businesses in making informed decisions that promote growth.
As a key player in the “large-cap stocks” category, which includes companies valued at $10 billion or more, FICO’s global reach and innovative strategies position it as a leader in enabling data-driven decision-making, risk management, and performance optimization, crucial for thriving in today’s rapidly changing market.
Currently, FICO’s shares are trading 14.6% below their 52-week high of $2,402.51, reached on November 13. Over the last three months, FICO’s stock has gained 7.9%, outperforming the broader S&P 500 Index ($SPX), which saw a 4.5% gain in the same period.
FICO’s long-term performance is impressive, returning 76.2% on a year-to-date basis, far exceeding the SPX’s 23.1%. Additionally, in the past 52 weeks, FICO grew by 78.6%, while the SPX’s growth was 23.9% during the same timeframe.
This stock has mostly traded above its 200-day moving average in the past year, indicative of a bullish trend, although it recently fell below the 50-day moving average.
Recent performance has been driven by increased demand for FICO’s credit-scoring services in the financial sector. This trend is expected to continue as lenders emphasize the importance of accurate risk assessment tools amidst ongoing economic challenges.
On November 6, FICO released its Q4 earnings, with shares rising over 4% in the next trading session. The adjusted EPS came in at $6.54, marking a 30.5% year-over-year increase, yet it fell short of Wall Street’s expectations of $6.60. Revenue increased by 16.4%, reaching $453.8 million, though it was slightly below analysts’ forecasts.
Looking ahead, the company’s fiscal 2025 guidance points to projected revenues of $1.98 billion, with non-GAAP net income expected to reach $712 million, translating to non-GAAP EPS of $28.58.
In contrast, FICO’s competitor, Autodesk, Inc. (ADSK), has not matched this performance, with ADSK stock showing a 20.3% gain in 2024 and 22.5% growth over the past 52 weeks.
Given FICO’s strong showing, analysts remain cautiously optimistic about the stock’s future. Among 13 analysts tracking the stock, the consensus rating stands at “Moderate Buy,” with a mean price target of $2,305.92, suggesting a potential upside of 12.4% from the current level.
On the date of publication, Rashmi Kumari 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.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
