Fair Isaac (FICO) Rides on Robust Portfolio & Strong Clientele
Fair Isaac FICO is having a terrific 2023, with shares rising 93% year to date, outperforming the Zacks Computer & Technology sector’s return of 51.5%. The company is benefiting from a robust portfolio, a strong partner base and an expanding clientele.
Fair Isaac is riding on its innovative portfolio. FICO recently expanded its patent trove with the addition of 10 patents related to digital decisioning, fraud detection, machine learning and responsible AI.
These patents provide a boost to the FICO Platform and other Fico software solutions. The FICO Platform enables businesses to absorb data, gain deep new insights through the use of AI and machine learning, make hyper-personalized decisions at scale, and deliver world-class business outcomes.
The company’s partner base also expanded recently, with NAFCU services selecting Fair Isaac as the new preferred partner. By joining NAFCU’s program, FICO will be able to expand its footprint among credit unions, thereby expanding its clientele.
Fair Isaac Corporation Price and Consensus
Fair Isaac Corporation price-consensus-chart | Fair Isaac Corporation Quote
Expanding Clientele Aids Prospects
Fair Isaac's enhancements to the FICO Platform Power Customer Connections earlier in 2023 enabled enterprise-wide transformation. It improved the customer experience with hyper-personalization and significantly boosted enterprise transformation success rates. This has boosted the adoption rate in recent times.
StepChange recently adopted the FICO Platform to assess individuals in debt. The microservice-oriented design of the FICO Platform is a more manageable approach that fits effectively with StepChange's new IT environment.
The FICO Platform enables StepChange to import more data sets than its legacy system can manage, hence boosting consumer advice. It is also user-friendly, which reduces StepChange’s training requirements.
Leading Indian banks, including HDFC Bank, Axis Bank and AU Small Finance, have adopted the FICO Platform.
The expanding clientele is expected to boost top-line growth of the company in 2024. Fair Issac expects total revenues of $1.68 billion for the next year. The Zacks Consensus Estimate for revenues is pegged at $1.69 billion, indicating year-over-year growth of 11.9%.
Zacks Rank & Stocks to Consider
Fair Isaac currently has a Zacks Rank #3 (Hold).
Ceridian HCM CDAY, Dropbox DBX and 8x8 EGHT are some better-ranked stocks in the broader sector, each flaunting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Year to date, shares of Ceridian HCM and Dropbox have gained 3.8% and 33.1%, respectively. 8x8 shares have declined 20.1% over the same timeframe.
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Fair Isaac Corporation (FICO) : Free Stock Analysis Report
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