Fidelity National Information Services (FIS) Stock Sinks As Market Gains: Here's Why
Fidelity National Information Services (FIS) closed the most recent trading day at $69.15, moving -0.97% from the previous trading session. This move lagged the S&P 500's daily gain of 1.03%. Meanwhile, the Dow experienced a rise of 0.34%, and the technology-dominated Nasdaq saw an increase of 1.51%.
Coming into today, shares of the banking and payment technologies company had gained 13.23% in the past month. In that same time, the Business Services sector gained 6.35%, while the S&P 500 gained 3.21%.
The investment community will be paying close attention to the earnings performance of Fidelity National Information Services in its upcoming release. On that day, Fidelity National Information Services is projected to report earnings of $0.96 per share, which would represent a year-over-year decline of 25.58%. Alongside, our most recent consensus estimate is anticipating revenue of $2.45 billion, indicating a 30.23% downward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.65 per share and a revenue of $10.13 billion, indicating changes of +37.98% and -17.31%, respectively, from the former year.
Any recent changes to analyst estimates for Fidelity National Information Services should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 9.2% upward. Right now, Fidelity National Information Services possesses a Zacks Rank of #2 (Buy).
In terms of valuation, Fidelity National Information Services is currently trading at a Forward P/E ratio of 15.03. Its industry sports an average Forward P/E of 13.5, so one might conclude that Fidelity National Information Services is trading at a premium comparatively.
It's also important to note that FIS currently trades at a PEG ratio of 0.88. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Financial Transaction Services industry stood at 1.15 at the close of the market yesterday.
The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 51, this industry ranks in the top 21% of all industries, numbering over 250.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report
