What’s Fueling Street’s Confidence in Fair Isaac Corporation (FICO)

Fair Isaac Corporation (NYSE:FICO) is among the most profitable software stocks to buy right now. On June 9, Clear Street lifted the price target on Fair Isaac Corporation (NYSE:FICO) to $1,625 from $1,617 and reiterated a Buy rating. As highlighted by the analyst, the company’s $2 billion stock repurchase program represents 7% of total diluted shares outstanding and reflects its robust balance sheet. What’s even more noteworthy is the company’s capital-light business model, which enables management to be aggressive when the stock’s valuation is appealing, the firm added.

On the same day, Needham maintained a Buy rating on Fair Isaac Corporation (NYSE:FICO) with a price target of $1,650. This came after the company’s major share repurchase program. With the company’s strong margins and cash flow conversion, the firm sees a $1.5 billion term loan as manageable. Needham believes this announcement provides a favorable backdrop for management’s confidence in the company’s future.

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Despite a negative one-year return, the company’s statistics point to a positive big picture. Fair Isaac Corporation (NYSE:FICO) has an impressive operating margin (ttm) of 58.19% and quarterly earnings growth (yoy) of 62.60%. Indeed, FICO is among the most profitable software stocks to buy right now.

Fair Isaac Corporation (NYSE:FICO) is a Montana-based provider of data analytics services focused on credit scoring. Founded in 1956, the company operates through two segments: Scores and Software.

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