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4/18/2024 1:55:42 PM Eastern Time

Didn't Break Down
By Karina Hernandez, Senior Research Analyst

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The S&P 500 faded at the open, as usual, but it didn’t break down thanks to early strength in most sectors.

The Russell 2000 is bouncing off support, but it is still an ugly situation.

Communication Service is the best performer driven by strong gains from Meta Platforms (META).

Existing home sales

Leading Economic index reversed lower in March -0.3%m/m vs. consensus -0.1%.

March existing home sales were -4.3% m/m vs. consensus -4.1%, and +9.5% in February. Despite this weak report, homebuilder stocks are rebounding nicely in today’s action following D.R. Horton’s (DHI) better-than-expected Q2 results.

Netflix (NFLX) is reporting after the bell.  Let’s see what they say about the consumers' appetite for spending. 

Long Idea: Fair Isaac Corporation (FICO) @ $1,170.87
Industry: Technology; Application Software
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BACKGROUND: Fair Isaac Corporation develops analytic, software, and digital decisioning technologies and services that enable businesses to automate, enhance, and connect decisions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates in two segments, Scores and Software. The Software segment provides pre-configured analytic and decision management solution designed for various business needs or processes, such as account origination, customer management, customer engagement, fraud detection, financial crimes compliance, and marketing, as well as associated professional services. This segment also offers FICO Platform, a modular software offering designed to support advanced analytic and decision use cases, as well as stand-alone analytic and decisioning software that can be configured by customers to address a wide range of business use cases. The Scores segment provides business-to-business scoring solutions and services for consumers that give clients access to predictive credit and other scores that can be integrated into their transaction streams and decision-making processes, as well as business-to-consumer scoring solutions comprising myFICO.com subscription offerings. It offers FICO Customer Analytics, FICO Responsible AI, FICO Advisors, FICO Business Outcome Simulator, FICO Forecaster, FICO TRIAD Customer Manager, FICO Blaze Advisor, FICO Xpress Optimization, FICO Falcon Fraud Manager, FICO Analytics Workbench, FICO Data Orchestrator, FICO

SKINNY: FICO has a strong market position and pricing power. The company is known for its Scores business as the de facto provider of credit scores for consumers in the U.S.

FICO expects results next week, some volatility is expected.

Slow and steady best describe the earnings execution, but analysts' estimates suggest a robust FY25 ahead. Our target is $1401.50.