We recently published a list of 15 Highest-Priced Stocks Right Now. In this article, we are going to take a look at where Fair Isaac Corporation (NYSE:FICO) stands against other highest-priced stocks right now.
2024 was a blockbuster year for the US markets, with the broad market index up 23.31% during the year, after rising 24.2% in the year prior. The two-year gain of 53% is the best performance for the index since the 66% rally between 1997 and 1998.
READ ALSO: 10 Best Single Digit Stocks To Buy Now and 12 Best S&P 500 Stocks to Invest in According to Analysts.
The market benefited from declining interest rates, waning inflation, and a resilient economy that avoided recession. While analysts have projected continued growth in 2025, they are also cautious about the rally having gone too far with a correction in the offing this year. Fears of fierce trade wars and geopolitical conflicts could also hurt the stock market.
Over the past few weeks, President Trump has announced and then delayed tariffs on Canada and Mexico, imposed additional 10% tariffs on Chinese goods, and warned the European Union of similar treatment, citing the bloc’s treatment of the U.S. The new administration’s protectionist policies have sparked concerns in the markets about which countries will be next on the American president’s list, leaving several large multinationals unsure of how to plan.
According to analysts at Goldman Sachs Research, index earnings could drop by 2-3% if the US goes ahead with its proposed tariffs. Financial markets have been turbulent amid ongoing tariff negotiations between Washington and its major trade partners. Here is what chief equity strategist, David Kostin, wrote in a recent report.
“If company managements decide to absorb the higher input costs, then profit margins would be squeezed. If companies pass along the higher costs to end customers, then sales volumes may suffer. Firms may try to push back on their suppliers and ask them to absorb part of the cost of the tariff through lower prices.”
Analysts at the investment banking firm have also warned that protectionist policies driving up the value of the U.S. Dollar could further pressure the earnings of several companies, especially those that derive a significant portion of their revenues outside the United States.
Time will tell whether the Trump administration implements the tariffs or reaches a compromise with its trade partners, and how the markets react if the export taxes are imposed. However, if past trends are anything to go by, the broad market index dropped by a total of 5% on days when the U.S., under Trump’s first stint as president, announced tariffs in 2018 and 2019. The index fell by a cumulative 7% when other countries imposed retaliatory tariffs.
Methodology
We went through screeners to identify the highest-priced stocks as of the close of the day on Friday, February 14, 2025 and ranked them in ascending order of their share price.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A hands-on approach: technicians working on data management products in an open lab space.
Fair Isaac Corporation (NYSE:FICO)
Share Price on February 14: $1,799.19
Fair Isaac Corporation (NYSE:FICO) is an applied analytics software company focused on using data science and predictive analytics to improve operational decisions. The company is known for its FICO score, which is widely used by financial institutions to evaluate consumer credit risk.
Fair Isaac Corporation (NYSE:FICO) serves various industries, offering fraud detection, risk management, and consulting services. It enjoys a dominant market share, with the FICO score used by approximately 90% of America’s top lenders. This enables the company to benefit from substantial pricing power and maintain steady earnings growth.
On February 4, Coca-Cola Consolidated, Inc. (NASDAQ:COKE) announced results for the first quarter of fiscal 2025. It reported revenues of $440 million, up 15% year-over-year. The Scores segment saw revenue growth of 23%, driven by higher unit prices and an increase in the volume of mortgage originations. Software revenues were also up 8% from last year, due to an uptick in recurring and license revenues.
Net income for the quarter stood at $152.5 million, compared to $121.1 million, in the prior year’s period. Non-GAAP earnings per share were posted at $5.79 versus $4.81 in Q1 2024. Net cash provided by operations also improved significantly from $122.1 million last year to $194.0 million in this year’s quarter.
Despite a 9% dip in its share price this year, Fair Isaac Corporation (NYSE:FICO) is one of the highest-priced stocks right now. Wall Street analysts anticipate a recovery, with an average share price upside potential of 16% for the company. Investor sentiment remains strong. According to Insider Monkey’s database for Q3 2024, 47 hedge funds held a stake in FICO, up from 42 at the end of the second quarter.
Overall, FICO ranks 10th on our list of highest-priced stocks right now. While we acknowledge the potential of conglomerate holding companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than FICO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
