12 Stocks to Buy That May Be Splitting Soon

8. Fair Isaac Corp. (NYSE:FICO)

Share Price as of March 17: $1,799.90

Surge in Share Price in 5 Years: 645.52%

Stock Split Confirmed: No

Number of Hedge Fund Holders: 60

Fair Isaac Corp. (NYSE:FICO) develops analytics and digital decisioning software for businesses globally. Operating through its Scores and Software segments, it provides credit scoring solutions and a range of analytical and decision management software. This includes the FICO Platform to automate and enhance business decisions across various sectors.

Its Scores segment is a major revenue generator, especially in the B2B area. In FQ1 2025, this segment’s revenue hit $236 million, which was a 23% increase year-over-year. The B2B side saw a 30% jump largely due to mortgage origination revenues, which skyrocketed by 110%. Mortgage-related revenue made up 44% of B2B revenue and 34% of the total Scores segment.

This growth is driven by the adoption of FICO Score 10 T, which is an advanced credit scoring model designed to provide lenders with a more precise assessment of credit risk, particularly in mortgage lending. Clients using this score represent a huge amount of mortgage originations and servicing. Loans using this score are now traded on the MCT Marketplace, and a mortgage-backed security using FICO Score 10 T was created. Fair Isaac Corp. (NYSE:FICO) is innovating and working on incorporating Buy Now Pay Later data into scores and developing a mortgage simulator.

Carillon Eagle Mid Cap Growth Fund stated the following regarding Fair Isaac Corporation (NYSE:FICO) in its Q3 2024 investor letter:

“Fair Isaac Corporation (NYSE:FICO) provides predictive analytics and data management products and services that enable businesses to automate, improve and connect decisions. The stock performed well during the period as quarterly earnings were strong and guidance was lifted. The quarter was highlighted by continued pricing gains in the company’s Scores business. Additionally, expectations of increased residential mortgage activity as interest rates move lower also aided the stock.”