Trade-Ideas: Fair Isaac (FICO) Is Today's New Lifetime High Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Fair Isaac ( FICO) as a new lifetime high 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 $8.1 million.
  • FICO has traded 77,338 shares today.
  • FICO is trading at a new lifetime high.

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More details on FICO:

Fair Isaac Corporation, together with its subsidiaries, provides analytic, software, and data management products and services to automate, improve, and connect decisions for businesses worldwide. The stock currently has a dividend yield of 0.1%. FICO has a PE ratio of 24.0. Currently there are no 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 141,200 shares per day over the past 30 days. Fair Isaac has a market cap of $1.9 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.38 and a short float of 3.1% with 6.46 days to cover. Shares are up 30.6% year to date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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 revenue growth, reasonable valuation levels, good cash flow from operations, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • FICO's revenue growth has slightly outpaced the industry average of 5.9%. Since the same quarter one year prior, revenues rose by 14.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has increased to $31.22 million or 36.15% when compared to the same quarter last year. In addition, FAIR ISAAC CORP has also vastly surpassed the industry average cash flow growth rate of -17.10%.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. 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.
  • FAIR ISAAC CORP's earnings per share declined by 8.5% 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 increased its bottom line by earning $2.55 versus $1.81 in the prior year. This year, the market expects an improvement in earnings ($2.81 versus $2.55).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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