FICO Soars: Analyzing the Surge in Fair Isaac Corporation’s Stock Performance
Valued at approximately $57.3 billion by market cap, Fair Isaac Corporation (FICO), based in Montana, has been a leader in global decision-making since 1956. The company utilizes predictive analytics and data science to enhance profitability and customer satisfaction in various sectors, including financial services, healthcare, and retail. With over 200 patents, FICO’s solutions are used by businesses in over 80 countries, combating fraud on four billion payment cards while also strengthening supply chain resilience and promoting financial inclusion.
FICO’s well-known FICO® Score is a critical component of credit risk evaluation; it’s trusted by 90% of top U.S. lenders and is used in more than 40 countries, serving as a benchmark for transparency in credit access globally. Over the last year, shares of FICO have soared by 120.7%, significantly outperforming the S&P 500 Index, which returned 31.8% in the same period.
This impressive momentum has carried into 2024 as well. The stock has registered a remarkable 103.9% return year-to-date, vastly exceeding the S&P 500’s 26.1% growth. Further comparison reveals FICO’s success against the Technology Select Sector SPDR Fund (XLK), which has achieved a 25.7% return over the last year and 20.7% since the beginning of 2024.
FICO’s strong share performance is driven by its reputable brand, solid financial standing, and effective cost controls. Central to its growth is the FICO® Score, a pioneering product that remains fundamental to its ongoing success. Following a strong Q4 earnings report on November 6, which exceeded expectations, FICO’s shares jumped more than 4% in the following trading session.
For the current fiscal year ending in September 2025, analysts predict that FICO’s earnings per share (EPS) will rise by 40.1% year-over-year, reaching $24.91. Historically, the company’s earnings surprises have been mixed; it has met or exceeded consensus estimates in only half of the last four quarters.
Among 13 analysts covering the stock, the consensus rating is a “Moderate Buy.” This includes seven “Strong Buy” endorsements, two “Moderate Buy” ratings, and four “Hold” recommendations. Interestingly, sentiment on Wall Street has shifted slightly more positive compared to three months ago, when only six analysts recommended a “Strong Buy.”
On November 7, Wells Fargo raised its price target for FICO from $2,200 to $2,400, while maintaining an “Overweight” rating on the stock. This adjustment indicates potential for further growth given FICO’s current trading levels.
Even though the stock is trading close to its average analyst price target of $2,242.23, the highest target among analysts sits at $2,500, suggesting that FICO could still rise by approximately 5.3% from current levels.
On the date of publication, Anushka Mukherjee did not hold (directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are intended for informational purposes. For more details, please view the Barchart Disclosure Policy here.
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