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First Advantage Corporation (NASDAQ:FA) is one of the cheap rising stocks to buy now. On March 12 at the BofA Securities 2026 Information & Business Services Conference, First Advantage Corporation (NASDAQ:FA) affirmed its transition from a background screening service to a comprehensive capital risk management solution. Consequently, it’s targeting to become a $2 billion company by 2028.
The transition saw the company achieve 17% top-line growth in the fourth quarter and 12% overall, as revenue hit $1.6 billion. Looking ahead, artificial intelligence is seen as an enabler rather than a disruptor in the industry, as the company maintains a high retention rate of about 97%.
In the fourth quarter, revenue was up 36.8% on a reported basis to $420 million, while full-year revenue rose 2.4% to $1.66 billion. Non-GAAP profit was 13.7% above analysts’ estimates at $0.30. For 2026, First Advantage expects revenue to range between $1.625 billion and $1.7 billion, with adjusted EBITDA between $460 million and $480 million. The company has also approved a $100 million share repurchase, affirming confidence in long-term growth.
First Advantage Corporation (FA) is a global provider of comprehensive background screening, identity verification, and compliance solutions for employers. It offers services such as criminal record checks, drug testing, and employment verification to help businesses hire safely and efficiently, leveraging automated technology for rapid, scalable results across industries.
While we acknowledge the potential of FA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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