Fidelity National Information Services (FIS) Rises But Trails Market: What Investors Should Know
Fidelity National Information Services (FIS) ended the recent trading session at $53.12, demonstrating a +0.04% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.43%. At the same time, the Dow added 0.19%, and the tech-heavy Nasdaq gained 0.71%.
Shares of the banking and payment technologies company witnessed a loss of 4.7% over the previous month, trailing the performance of the Business Services sector with its loss of 2.36% and the S&P 500's loss of 2.1%.
The investment community will be paying close attention to the earnings performance of Fidelity National Information Services in its upcoming release. In that report, analysts expect Fidelity National Information Services to post earnings of $1.51 per share. This would mark a year-over-year decline of 13.22%. Simultaneously, our latest consensus estimate expects the revenue to be $3.65 billion, showing a 1.2% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.90 per share and revenue of $14.6 billion, which would represent changes of -11.28% and +0.5%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Fidelity National Information Services. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.87% lower. As of now, Fidelity National Information Services holds a Zacks Rank of #3 (Hold).
Digging into valuation, Fidelity National Information Services currently has a Forward P/E ratio of 9. For comparison, its industry has an average Forward P/E of 13.46, which means Fidelity National Information Services is trading at a discount to the group.
It is also worth noting that FIS currently has a PEG ratio of 0.87. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Financial Transaction Services industry was having an average PEG ratio of 1.19.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 177, which puts it in the bottom 30% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report
