Why Fidelity National Information Services (FIS) Dipped More Than Broader Market Today
Fidelity National Information Services (FIS) ended the recent trading session at $63.15, demonstrating a -0.55% swing from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.06%. Meanwhile, the Dow experienced a rise of 0.35%, and the technology-dominated Nasdaq saw a decrease of 0.76%.
Coming into today, shares of the banking and payment technologies company had gained 5.71% in the past month. In that same time, the Business Services sector gained 1.8%, while the S&P 500 gained 3.36%.
Investors will be eagerly watching for the performance of Fidelity National Information Services in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.95, marking a 44.44% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $2.52 billion, indicating a 32.16% decline compared to the corresponding quarter of the prior year.
Investors should also note any recent changes 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate has moved 3.78% higher within the past month. Fidelity National Information Services is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Fidelity National Information Services has a Forward P/E ratio of 14.68 right now. This represents a premium compared to its industry's average Forward P/E of 13.28.
We can additionally observe that FIS currently boasts a PEG ratio of 1.05. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Financial Transaction Services was holding an average PEG ratio of 1.16 at yesterday's closing price.
The Financial Transaction Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 96, positioning it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report
