Fair Isaac Inc Is ValuEngine Top Stock

May 10, 2016 2:17 PM ETFICO
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Long/Short Equity, Long Only

Contributor Since 2010

Steve Hach is the Senior Editor at ValuEngine.com, a Melbourne, Florida-based stock valuation and forecast service. ValuEngine utilizes Ivy League financial research as the basis for its coverage of more than 8000 US, Canadian, and other foreign stocks. Hach utilizes ValuEngine's complex quantitative models to create products and services for both individual investors, and institutional clients. Steve's research is distributed throughout such organizations as Wells Fargo, Fidelity Investments, Scotia Capital, Bank of New York, etc. His research reports are published on Yahoo Finance, Thomson/Reuters, Capital IQ, Bloomberg, and others. Hach developed the ValuEngine Forecast 16 MNS Portfolio Newsletter so that individual investors could access one of ValuEngine's most successful and well-researched hedge fund-type strategies. The newsletter relies on ValuEngine's Forecast Model-- which utilizes fundamental data along with complex mathematical modeling to pick stocks that outperform the markets. With both a long and a short side, the VE Forecast 16 MNS Portfolio provides a combination of high returns and low volatility in both good markets and bad. This newsletter is perfect for those seeking to take advantage of today's advanced stock forecasting and portfolio-construction techniques. Hach has a varied research background that includes military experience as an intelligence specialist, a Master’s degree in US History, and Doctoral work in US Diplomatic History and International Relations.

VALUATION WATCH: Overvalued stocks now make up 41.55% of our stocks assigned a valuation and 13.23% of those equities are calculated to be overvalued by 20% or more. Six sectors are calculated to be overvalued.

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Number One --Fair Isaac Inc Is ValuEngine Top Stock

ValuEngine tracks more than 7000 US equities, ADRs, and foreign stock which trade on US exchanges as well as @1000 Canadian equities. When EPS estimates are available for a given equity, our model calculates a level of mispricing or valuation percentage for that equity based on earnings estimates and what the stock should be worth if the market were totally rational and efficient--an academic exercise to be sure, but one which allows for useful comparisons between equities, sectors, and industries. Using our Valuation Model, we can currently assign a VE valuation calculation to more than 2800 stocks in our US Universe.

We combine all of the equities with a valuation calculation to track market valuation figures and use them as a metric for making calls about the overall state of the market. Two factors can lower these figures-- a market pullback, or a significant rise in EPS estimates.

We also use trading data to provide forecast estimates for a variety of time horizons for almost ever equity in our database. Our Buy/Sell/Hold recommendations are based upon the 1-year forecast return figure. Using valuation and forecast figures, you can rank and rate our covered stocks against each other, to find out, in an objective and systematic way, the most attractive investment targets based on your own risk/reward parameters. We re-calculate the entire database every trading day, so you are assured that every proprietary valuation and forecast datapoint is as up-to-date as possible.

So, for today's bulletin we used our website's advanced screening functions to search for the top-rated STRONG BUY US stock with valuation data that meets minimum liquidity requirements. Fair Isaac Inc (FICO) is the leader here.

Fair Isaac Corporation makes decisions smarter. The company's solutions and technologies for Enterprise Decision Management give businesses the power to automate more processes, and apply more intelligence to every customer interaction. Through increasing the precision, consistency and agility of their decisions, Fair Isaac clients worldwide increase sales, build customer value, cut fraud losses, manage credit risk, reduce operational costs, meet changing compliance demands and enter new markets more profitably. Fair Isaac powers hundreds of billions of decisions each year in financial services, insurance, telecommunications, retail, consumer branded goods, healthcare and the public sector.

ValuEngine updated its recommendation from BUY to STRONG BUY for FAIR ISAAC INC on 2016-05-09. Based on the information we have gathered and our resulting research, we feel that FAIR ISAAC INC has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Sharpe Ratio and P/E Ratio.

You can download a free copy of detailed report on Fair Isaac from the link below.


 






ValuEngine Forecast
  Target
Price*
Expected
Return
1-Month 109.39 1.58%
3-Month 108.54 0.79%
6-Month 107.38 -0.29%
1-Year 128.33 19.17%
2-Year 83.46 -22.50%
3-Year 36.00 -66.57%

 















Valuation & Rankings
Valuation 75.00% undervalued Valuation Rank(?) 100
1-M Forecast Return 1.58% 1-M Forecast Return Rank 100
12-M Return 23.36% Momentum Rank(?) 89
Sharpe Ratio 0.94 Sharpe Ratio Rank(?) 97
5-Y Avg Annual Return 25.46% 5-Y Avg Annual Rtn Rank 96
Volatility 27.12% Volatility Rank(?) 63
Expected EPS Growth 74.75% EPSGrowth Rank(?) 83
Market Cap (billions) 3.42 Size Rank 81
Trailing P/E Ratio 7.28 Trailing P/E Rank(?) 95
Forward P/E Ratio 4.17 Forward P/E Ratio Rank 98
PEG Ratio 0.10 PEG Ratio Rank 84
Price/Sales 4.02 Price/Sales Rank(?) 22
Market/Book 8.03 Market/Book Rank(?) 14
Beta 1.42 Beta Rank 25
Alpha 0.20 Alpha Rank 87
ValuEngine Market Overview

 

 

 

 

 

Summary of VE Stock Universe
Stocks Undervalued 58.45%
Stocks Overvalued 41.55%
Stocks Undervalued by 20% 25.37%
Stocks Overvalued by 20% 13.23%

 

ValuEngine Sector Overview

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sector Change MTD YTD Valuation Last 12-MReturn P/E Ratio
Basic Materials -0.05% -0.94% 5.78% 8.21% overvalued -1.03% 24.71
Consumer Staples -0.15% -0.25% 5.46% 8.12% overvalued -1.21% 23.80
Industrial Products -3.80% -5.88% 25.21% 5.44% overvalued 7.56% 28.18
Utilities -0.92% -2.17% 4.55% 3.85% overvalued -11.99% 20.33
Multi-Sector Conglomerates -0.61% -1.21% 3.50% 1.58% overvalued -8.54% 17.07
Oils-Energy 0.16% -0.40% -2.50% 0.56% overvalued -6.97% 17.94
Aerospace -0.32% -0.88% 17.10% 2.25% undervalued -6.55% 20.57
Construction -0.01% -0.68% 0.49% 3.07% undervalued -6.31% 15.80
Finance 0.28% -0.09% 8.20% 3.77% undervalued -9.84% 21.70
Computer and Technology -3.06% -7.59% 4.39% 4.25% undervalued -39.37% 21.64
Business Services 0.13% -0.32% 2.46% 4.54% undervalued -10.19% 22.30
Consumer Discretionary -0.38% -2.09% 3.58% 6.38% undervalued -10.24% 26.00
Medical 0.72% -2.23% -5.68% 8.54% undervalued -20.53% 26.28
Retail-Wholesale 0.63% -1.17% -1.44% 10.14% undervalued -14.68% 22.41
Auto-Tires-Trucks -0.81% -3.20% -1.79% 12.56% undervalued -17.45% 11.57
Transportation -1.03% -3.78% 0.87% 13.01% undervalued -29.15% 13.57

ValuEngine.com is an independent research provider, producing buy/hold/sell recommendations, target price, and valuations on over 7,000 US and Canadian equities every trading day.

Supporting Documents

  1. TMP_VE_FICO_20160510053297.pdf

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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