Fair Isaac (FICO) Moves 18.0% Higher: Will This Strength Last?

Fair Isaac FICO shares soared 18% in the last trading session to close at $1. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.5% loss over the past four weeks.

The upswing came after the company announced that it would now sell credit scores directly to mortgage resellers.

This financial services company is expected to post quarterly earnings of $7.46 per share in its upcoming report, which represents a year-over-year change of +14.1%. Revenues are expected to be $517.41 million, up 14% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Fair Isaac, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on FICO going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Fair Isaac belongs to the Zacks Computers - IT Services industry. Another stock from the same industry, Nutanix NTNX, closed the last trading session 1.8% higher at $76.92. Over the past month, NTNX has returned 11.2%.

For Nutanix, the consensus EPS estimate for the upcoming report has changed -2.8% over the past month to $0.41. This represents a change of -2.4% from what the company reported a year ago. Nutanix currently has a Zacks Rank of #3 (Hold).

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

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research