Fidelity National Information Services (FIS) Increases Yet Falls Behind Market: What Investors Need to Know
The latest trading session saw Fidelity National Information Services (FIS) ending at $62.45, denoting a +0.45% adjustment from its last day's close. This move lagged the S&P 500's daily gain of 0.57%. Elsewhere, the Dow gained 0.46%, while the tech-heavy Nasdaq added 0.75%.
Shares of the banking and payment technologies company witnessed a gain of 7.49% over the previous month, beating the performance of the Business Services sector with its gain of 2.21% and the S&P 500's gain of 3.4%.
The investment community will be paying close attention to the earnings performance of Fidelity National Information Services in its upcoming release. The company is predicted to post an EPS of $0.95, indicating a 44.44% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $2.52 billion, showing a 32.14% drop compared to the year-ago quarter.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Fidelity National Information Services. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.1% rise in the Zacks Consensus EPS estimate. Right now, Fidelity National Information Services possesses a Zacks Rank of #3 (Hold).
Investors should also note Fidelity National Information Services's current valuation metrics, including its Forward P/E ratio of 14.91. This denotes a premium relative to the industry's average Forward P/E of 12.57.
It is also worth noting that FIS currently has a PEG ratio of 1.27. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Financial Transaction Services industry had an average PEG ratio of 1.17 as trading concluded yesterday.
The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 68, this industry ranks in the top 27% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report
