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.

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 $20.7 million.
  • FICO has traded 2,726 shares today.
  • FICO is trading at a new lifetime high.

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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 34.4. Currently there are 2 analysts that rate Fair Isaac a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Fair Isaac has been 243,900 shares per day over the past 30 days. Fair Isaac has a market cap of $2.9 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.55 and a short float of 4.8% with 6.08 days to cover. Shares are up 27.2% year-to-date as of the close of trading on Wednesday.

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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, revenue growth, notable return on equity and expanding profit margins. 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:
  • Compared to its closing price of one year ago, FICO's share price has jumped by 77.44%, exceeding the performance of the broader market during that same time frame. 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.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.9%. Since the same quarter one year prior, revenues slightly increased by 2.8%. 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.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. 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.
  • 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 $2.74 versus $2.49 in the prior year. This year, the market expects an improvement in earnings ($2.90 versus $2.74).
  • The gross profit margin for FAIR ISAAC CORP is rather high; currently it is at 67.75%. Regardless of FICO's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, FICO's net profit margin of 7.60% is significantly lower than the industry average.

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