Trade-Ideas LLC identified

Fair Isaac

(

FICO

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Fair Isaac as such a stock due to the following factors:

  • FICO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.7 million.
  • FICO has traded 35 options contracts today.
  • FICO is making at least a new 3-day high.
  • FICO has a PE ratio of 26.
  • FICO is mentioned 0.94 times per day on StockTwits.
  • FICO has not yet been mentioned on StockTwits today.
  • FICO is currently in the upper 20% of its 1-year range.
  • FICO is in the upper 35% of its 20-day range.
  • FICO is in the upper 45% of its 5-day range.
  • FICO is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on FICO:

Fair Isaac Corporation develops analytic, software, and data management solutions that enable businesses to automate, enhance, and connect decisions to business performance. The stock currently has a dividend yield of 0.1%. FICO has a PE ratio of 26. Currently there are 4 analysts that rate Fair Isaac a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Fair Isaac has been 162,300 shares per day over the past 30 days. Fair Isaac has a market cap of $3.7 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.24 and a short float of 5.7% with 13.10 days to cover. Shares are up 24.9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Fair Isaac as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, expanding profit margins, growth in earnings per share, notable return on equity and increase in net income. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The gross profit margin for FAIR ISAAC CORP is currently very high, coming in at 71.90%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 11.18% trails the industry average.
  • FAIR ISAAC CORP has improved earnings per share by 24.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, FAIR ISAAC CORP reported lower earnings of $2.66 versus $2.74 in the prior year. This year, the market expects an improvement in earnings ($3.01 versus $2.66).
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 0.7%. Since the same quarter one year prior, revenues slightly dropped by 0.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Software industry average, but is greater than that of the S&P 500. The net income increased by 22.5% when compared to the same quarter one year prior, going from $18.87 million to $23.12 million.

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