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 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 $14.0 million.
  • FICO is making at least a new 3-day high.
  • FICO has a PE ratio of 32.
  • FICO is mentioned 0.84 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 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 32. 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 187,800 shares per day over the past 30 days. Fair Isaac has a market cap of $2.7 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.69 and a short float of 5% with 8.90 days to cover. Shares are up 20.4% year-to-date as of the close of trading on Thursday.

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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 revenue growth, notable return on equity, solid stock price performance and expanding profit margins. 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 revenue growth came in higher than the industry average of 5.0%. Since the same quarter one year prior, revenues rose by 11.7%. 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.
  • Compared to its closing price of one year ago, FICO's share price has jumped by 46.51%, 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.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to the other companies in the Software industry and the overall market, FAIR ISAAC CORP's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • FAIR ISAAC CORP' earnings per share from the most recent quarter came in slightly below the year earlier quarter. 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 ($2.80 versus $2.74).
  • The gross profit margin for FAIR ISAAC CORP is rather high; currently it is at 68.34%. 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 9.11% is significantly lower than the industry average.

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