Including Nvidia, Microsoft, Tesla, Apple, and the others, none of the Magnificent Seven stocks have pulled off this feat by credit score colossus Fair Isaac. FICO stock has secured a spot on the list of new buys by the best mutual funds in each of the last three months.
So while Apple and Meta Platforms made one appearance two months ago, Nvidia, Tesla, Alphabet, and the rest of these megacaps failed to make even a single appearance.
Meanwhile, FICO stock also has just popped onto the IBD Breakout Stocks Index. Although down slightly on Wednesday, shares of Fair Isaac continue to build toward a new buy zone in an early-stage cup pattern.
FICO Stock And Microsoft Shine As Long-Term Leaders
Best known as the company behind FICO credit scores, Fair Isaac, which was founded in 1956, helped pioneer predictive analytics and data science to improve operational decisions. Today, 90% of top U.S. lenders use the FICO score. The rating measures consumer credit risk in the U.S. and has been made available in over 40 other countries.
In addition to three straight appearances on the monthly screen of new buys by top funds, FICO also earns a spot on the elite IBD Long-Term Leaders list. Curated by Investor's Business Daily market experts, the list focuses on earnings stability and long-term relative strength. FICO stock is among just 12 names on the list, including Microsoft, Cadence Design Systems and O'Reilly Automotive.
A strong track record of solid and stable sales earnings growth underlies enduring demand for FICO stock.
Over the last eight quarters, FICO has posted sales growth ranging from 11% to 16%. On April 29, the S&P 500 company reported $498.7 million in revenue, a 15% increase over the prior-year quarter.
Earnings growth rose 27% to $7.81 per share. Including the most recent filing, FICO's earnings growth has now ranged from 10% to 31% over the last eight quarters.
So while FICO isn't known to produce spurts of spectacular growth like Nvidia, Meta and others have at times, strong and stable gains continue to attract institutional investors.
FICO stock's stellar 2.0 up/down volume ratio, where anything above 1.0 points to demand. It also sports an A- Accumulation/Distribution Rating. By comparison, Nvidia currently rates a D Accumulation/Distribution Rating and a 1.1 up/down volume ratio.
Fellow long-term leader Microsoft earns a B Accumulation/Distribution Rating and a 1.2 up/down volume ratio.
See All Names On The IBD Breakout Stocks Index
FICO Stock Shows Rebounding Strength
As the market indexes continue to soar, Microsoft, Nvidia, Tesla and other Magnificent Seven members rally with rebounding technical strength. After a pullback that started in December, FICO stock is now doing the same.
FICO's relative strength line headed south as the left side of the cup pattern formed. But as the right side of the base forms with multiple weeks of tight and healthy trading, the RS line turned sharply upward.
Another sign of rising technical strength is how the 21-day exponential moving average has jumped back above both the 200-day and 50-day lines. Investors should now look to see the 50-day line climb back above the longer-term 200-day benchmark as a potential breakout approaches.
IBD Breakout Opportunities ETF
The IBD Breakout Opportunities ETF from Innovator Capital Management tracks the IBD Breakout Stocks Index. As with other index ETFs, this fund allows you to invest in the entire index in addition to, or rather than, buying individual stocks. Learn more here about the ETF and Innovator.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
