(FA) First Advantage - Ratings and Ratios

First Advantage Corporation (NASDAQ:FA) is a leading global provider of employment background screening, identity verification, and related solutions, serving organizations across various industries. Established in 2002 and headquartered in Atlanta, Georgia, the company operates under the name First Advantage Corporation since March 2021, having previously been known as Fastball Intermediate, Inc. Its comprehensive suite of services includes pre-onboarding solutions such as criminal background checks, drug and health screening, education and employment verification, and identity checks, utilizing advanced biometric fraud mitigation tools. Additionally, the company offers post-onboarding solutions, including criminal records monitoring, I-9 verification, healthcare sanctions monitoring, and social media screening, designed to help organizations maintain compliance and mitigate risks. Their client base spans global enterprises, mid-sized firms, and small businesses, with solutions tailored for personnel in recruiting, human resources, risk management, compliance, vendor management, safety, and security roles. The companys services also extend to fleet and vehicle compliance, hiring tax credits, resident and tenant screening, and investigative research, leveraging their expertise in data-driven solutions to support informed decision-making.

Looking ahead, the three-month forecast for First Advantage Corporation (NASDAQ:FA) is informed by both technical and fundamental analysis. From a technical perspective, the stock is currently trading at $14.32, with a 20-day moving average of $14.02 and a 50-day moving average of $14.57, while the 200-day moving average stands at $17.59. This indicates a potential downtrend, as the shorter-term averages are below the longer-term average. The Average True Range (ATR) of 0.72 suggests moderate volatility. Fundamentally, the company has a market capitalization of $2.337 billion, with a forward P/E ratio of 15.67 and a price-to-sales ratio of 2.72. The return on equity is currently negative at -0.01, which may raise concerns about profitability. Considering these factors, the stock may face challenges in the near term, with potential price targets around the $13.50 level unless positive catalysts emerge to reverse the current trend.