10 Best-Performing S&P 500 Stocks in the Last 3 Years

4. Fair Isaac Corporation (NYSE:FICO)

3Y CAGR: 71.52%

Fair Isaac Corporation (NYSE:FICO) is a data analytics company out of Bozeman, Montana that provides credit-scoring services. The company posted solid Q3 financial performance and is up 74% year-to-date. In Q3, the company’s revenue was up 12% year over year at $448 million. The non-GAAP EPS was up 10%. The company also raised its annual guidance.

Since mortgage originations are 50% below their long-term historical average, Baron Fintech fund estimates that this return to normalcy could increase FICO’s earnings by half. They continue to hold FICO due to its competitive advantage.

Conestoga Capital Advisors had the following to say about Fair Isaac Corporation (NYSE:FICO) in their Q2 2024 investor letter:

“Fair Isaac Corporation (NYSE:FICO): FICO is a leader in predictive analytics and decision management software and is also the provider of FICO credit scores. Fiscal 2Q24 results came in ahead of consensus’ expectations, with upside in revenue and margins due to special pricing in the Scores business. This also drove a healthy non-GAAP earnings per share (EPS) beat. While software revenue and bookings fell a bit short of expectations, platform growth continues at a solid pace and margins showed further signs of scaling higher. Importantly, FICO’s pricing power remains intact, and we believe this bodes well for future results.”