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 "dead cat bounce" (down big yesterday but up big today) 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 $26.0 million.
  • FICO has traded 87,807 shares today.
  • FICO is up 3.7% today.
  • FICO was down 8.8% yesterday.

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More details on FICO:

Fair Isaac Corporation provides analytic, software, and data management products and services that enable businesses to automate, enhance, and connect decisions to enhance business performance worldwide. The stock currently has a dividend yield of 0.1%. FICO has a PE ratio of 29.2. Currently there is 1 analyst that rates Fair Isaac a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Fair Isaac has been 227,800 shares per day over the past 30 days. Fair Isaac has a market cap of $2.5 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.53 and a short float of 2.3% with 1.81 days to cover. Shares are down 1.3% 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, notable return on equity, solid stock price performance, growth in earnings per share and increase in net income. We feel these 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:
  • FICO's revenue growth has slightly outpaced the industry average of 8.6%. Since the same quarter one year prior, revenues rose by 16.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 39.24% and other important driving factors, this stock has surged by 45.06% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, FICO should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • FAIR ISAAC CORP has improved earnings per share by 39.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, FAIR ISAAC CORP increased its bottom line by earning $2.74 versus $2.49 in the prior year. This year, the market expects an improvement in earnings ($2.96 versus $2.74).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Software industry average. The net income increased by 28.2% when compared to the same quarter one year prior, rising from $28.56 million to $36.60 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Software industry and the overall market, FAIR ISAAC CORP's return on equity exceeds that of both the industry average and the S&P 500.

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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