Here's How Much a $1000 Investment in Fair Isaac Made 10 Years Ago Would Be Worth Today

How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.What if you'd invested in Fair Isaac (FICO) ten years ago? It may not have been easy to hold on to FICO for all that time, but if you did, how much would your investment be worth today?Fair Isaac's Business In-DepthWith that in mind, let's take a look at Fair Isaac's main business drivers. Fair Isaac Corporation, better known as FICO, offers analytical tools, software and solutions that help in making informed decisions.Bozeman, MT-based FICO serves a diversified end-market that includes the likes of banks, credit card issuers, insurers, retailers, telecommunication providers, automotive lenders, consumer reporting agencies and public agencies.Through FICO’s online services consumers can access and understand their FICO Scores, which is a standard measure of consumer credit risk in the United States. The FICO Score, which is a three-digit number ranging from 300-850, helps consumers manage their financial health.FICO reported revenues of $1.51 billion in fiscal 2023. It has two operating segments, Scores and Software.The Scores segment includes business-to-business (B2B) and business-to-consumer (B2C) scoring solutions. While B2B Scores are distributed through major consumer reporting agencies globally, B2C is sold directly to consumers through myFICO.com and other direct-to-consumer channels.FICO Scores are generated by using FICO’s proprietary analytic algorithms on credit data collected and maintained by the three U.S. national consumer reporting agencies, Experian, TransUnion and Equifax. This score is then used across the credit lifecycle. Users of the Scores generally pay the consumer reporting agencies a fee, while the consumer reporting agencies pay an associate fee to FICO.FICO launched its updated Scores, FICO Score 10 and 10T, in January 2020. FICO Score 9 and FICO Score 8 remain the most distributed scores currently.The Software segment addresses business consumer needs in terms of customer engagement, including acquisition and pricing, onboarding, servicing and management, and fraud protections in more than 100 countries. FICO Software can be deployed in the cloud using third-party cloud services or on-premise using clients’ IT infrastructure.Most of FICO’s solutions run on the FICO Platform, which offers an analytic and decisioning environment and is based on a modular cloud architecture. Annual Recurring Revenue (ARR) from FICO Platform-based products was $173.2 million as of Sep 30, 2023, which accounted for 26% of FICO’s total software ARR.Bottom LineAnyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Fair Isaac ten years ago, you're likely feeling pretty good about your investment today.According to our calculations, a $1000 investment made in November 2014 would be worth $33,157.38, or a gain of 3,215.74%, as of November 11, 2024, and this return excludes dividends but includes price increases.In comparison, the S&P 500 gained 195.07% and the price of gold went up 121.31% over the same time frame.Analysts are anticipating more upside for FICO. FICO’s fourth-quarter performance benefited from a robust portfolio and an expanding clientele. Strong growth in Scores and Software segments was a plus. Strong adoption of FICO Scores in the consumer credit scoring market, which is used for asset-backed securitizations across major collateral classes, including student loans, consumer finance and credit cards, contributed well to top-line growth. For non-conforming mortgages, FICO Score 10T gained solid traction. FICO expanded its reach to mortgage-backed securities, which was a major positive. The company is also benefiting from strong demand for the FICO platform. Its strategy of adding new features frequently is helping win new customers. Despite a leveraged balance sheet, the company’s free cash flow generating ability is noteworthy. The stock has jumped 14.84% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 3 higher, for fiscal 2024; the consensus estimate has moved up as well.Free Report: 5 Clean Energy Stocks with Massive UpsideEnergy is the backbone of our economy. It’s a multi-trillion dollar industry that has created some of the world’s largest and most profitable companies.Now state-of-the-art technology is paving the way for clean energy sources to overtake “old-fashioned” fossil fuels. Trillions of dollars are already pouring into clean energy initiatives, from solar power to hydrogen fuel cells.Emerging leaders from this space could be some of the most exciting stocks in your portfolio.Download Nuclear to Solar: 5 Stocks Powering the Future to see Zacks’ top picks free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fair Isaac Corporation (FICO): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks