Topic: How To Invest

Power Growth Investor Hotline – Friday, November 15, 2019

Article Excerpt

FAIR ISAAC CORP., $348.11, is a buy for our subscribers. Investors in this stock draw their gains from a company (symbol FICO on New York) best known for its FICO Scores software. It lets lenders make better decisions about customer creditworthiness. Fair Isaac also makes programs that help credit-card issuers reduce fraud and analyze the spending patterns of cardholders. For the quarter ended September 30, 2019, revenue jumped 19.0%, to $305.3 million from $256.5 million a year earlier. Sales of computer applications (49% of the total) rose 8%. Meanwhile, sales of credit-scoring programs (38%) jumped 30% and sales of analytics software (13%) rose 41%. Excluding one-time items, Fair Isaac earned $60.8 million, or $2.10 a share, in the latest quarter. That was up a whopping 47.9% from $41.1 million, or $1.41. The gains reflect the improved sales. The company expects to earn $8.30 a share in 2020. The stock trades at a high 41.9 times that forecast. Still, the multiple is not unreasonable…

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.