Fair Isaac still a buy despite setback

Article Excerpt

FAIR ISAAC CORP. $39 (New York symbol FIC; WSSF Rating: Average) has successfully made its FICO credit scoring system, which calculates the likelihood that an individual will pay back a loan based on prior credit history and other factors, into an industry standard. In fact, 99 of the top 100 U.S. banks, and half of the top 50 banks in the world, use FICO scores to cut their credit risk. In March, three major credit agencies teamed up to launch a new scoring system that will compete with FICO. The FICO system supplies about half of Fair Isaac’s profit, and the news cut the stock from around $44 to $36.50. However, we feel that most of Fair Isaac’s customers would be reluctant to switch to a new, unproven system. Fair Isaac is also doing a good job cutting its reliance on FICO scores with new products, such as software that helps banks and retailers detect fraudulent transactions. Fair Isaac is still a..

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.