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Momentum

Fair Isaac Corp. (FICO - Snapshot Report) is up more than 70% in the last two months, recently jumping into a new multi-year high on another strong quarter. With estimates on the rise and a bullish growth projection, this Zacks #1 Rank stock scores high on the momentum scale.

Company Description

Fair Isaac Corp, together with its subsidiaries, provides analytic, software and data management services related to credit and risk metrics worldwide. The company was founded in 1956 and has a market cap of $1.25 billion.

Fair Isaac has seen big gains over the last two months, getting a nice boost on strong Q3 results from early November that came in ahead of expectations.

Third-Quarter Results

Revenue for the period was up 3% from last year to $160 million. Earnings also came in strong at 61 cents, 5% ahead of the Zacks Consensus Estimate.

The good quarter was led by its Scores segment, where revenue was up 8% from last year to $45 million. Revenue in its largest segment, Applications, was up 1%, coming in at $97 million.

Financial Profile

Fair Isaac has been using its earnings momentum to strengthen its financial profile, where total debt is down $99 million from last year to $1.05 billion.

Estimates

We saw some pretty solid movement in estimates off the goof quarter, with the current year up 34 cents to $2.48. The next-year estimate is pegged at $2.72, a solid 10% growth projection.

Valuation

With a PEG ratio of 1.3, FICO trades at a premium to the benchmark of 1 for value.

3-Month Chart

On the chart, shares took a big jump higher into a new multi-year high on the good quarter. Take a look below.

Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Whisper Trader Service.

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