/Fair%20Isaac%20Corp_%20FICO%20picture-by%20Hairullah%20Bin%20Ponichan%20via%20Shutterstock.jpg)
Bozeman, Montana-based Fair Isaac Corporation (FICO) is a leading analytics software company best known for creating the FICO Score, a widely used credit scoring model in the U.S. and globally. Valued at a market cap of $38.3 billion, the company also provides decision management, predictive analytics, and artificial intelligence solutions that help businesses in banking, insurance, healthcare, and retail make smarter, data-driven decisions.
Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and FICO fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the software - application industry. With its strong reputation in risk assessment and innovative analytics platforms, the company plays a critical role in powering consumer credit markets and enterprise decision-making worldwide.
Despite its notable strength, this software company has dipped 33.5% from its 52-week high of $2,402.52, reached on Nov. 13, 2024. Moreover, shares of FICO have declined 11.6% over the past three months, significantly underperforming the Technology Select Sector SPDR Fund’s (XLK) 12.8% return during the same period.
In the longer term, FICO has fallen 13% over the past 52 weeks, significantly lagging behind XLK's 24.6% uptick over the same time period. Moreover, on a YTD basis, shares of FICO are down 19.8%, compared to XLK’s 16.6% surge.
To confirm its bearish trend, FICO has been trading below its 200-day moving average since mid-May. However, it has been trading above its 50-day moving average since early September.
On Jul. 30, FICO reported its Q3 results. The company reported a notable 34.3% year-over-year rise in its scores segment revenue, which led to an impressive 19.8% growth in its top line to $536.4 million. Meanwhile, its adjusted EPS came in at $8.57, representing a robust 37.1% increase from the year-ago quarter. Both the metrics handily topped the consensus estimates. Additionally, FICO raised its fiscal 2025 adjusted EPS guidance to $29.15 at the midpoint, reflecting confidence in its growth trajectory. However, despite these positives, its shares plunged 6% in the following trading session.
FICO has outpaced its rival, Adobe Inc. (ADBE), which declined 39.6% over the past 52 weeks and 21.2% on a YTD basis.
Despite FICO’s recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 17 analysts covering it, and the mean price target of $1,858.69 suggests a 16.4% premium to its current price levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
