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Fair Isaac finally hit a new all-time high today. It took nearly two years for the company to break into record territory.

J.P. Morgan upgraded Fair Isaac today to overweight from neutral. I’m not a big fan of following analyst upgrades or downgrades, but this one is nice to see. Fair Isaac has a very strong business. I especially like the fact that its gross margins come to about 70% of sales. That’s the sign of a well-run business.

The company will report its fiscal fourth-quarter earnings in late-October. The current estimate is for 49 cents a share. This means that although FIC’s stock is roughly where it was two years ago, its profits are nearly 30% higher. This is a solid stock to own.

You can see my complete Buy List here.

Posted by edelfenbein at September 28, 2005 12:55 PM