Back to top

Analyst Blog

On Jan 11, 2014, Zacks Investment Research upgraded Fidelity National Information Services (FIS - Analyst Report) to a Zacks Rank #1 (Strong Buy). With a strong return of 42.5% over the past one year and a positive estimate revision trend, Fidelity is an attractive investment opportunity.

Why the Upgrade?

We upgraded the stock on the back of strong 2014 outlook. Continuing organic growth, growing customer base and margin expansions driven by solid demand for the company’s products are the primary reasons behind this expectation.

Fidelity continues to add new clients in North America, particularly from the banking industry. During the fourth quarter (ended Dec 2013), the company signed a deal with Beneficial Bank of Philadelphia.

International sales are also expected to drive growth, as the company continues to win new awards. Fidelity’s solutions were selected by Bharatiya Mahila Bank Ltd., India’s first women-focused public sector bank, during the quarter.

Fidelity expects 2013 revenues (reported and organic) to grow in the range of 4.0% to 5.0%. The current Zacks Consensus Estimate for revenues is pegged at $6.06 billion, which is in line with the lower end of the guided range.

Fidelity expects 2013 earnings to be in the range of $2.80 to $2.87 (prior outlook was $2.77 and $2.87) per share.

Earnings Estimate Revision

Fidelity is expected to report stable fourth-quarter fiscal 2013 results on Feb 5, 2014. The Zacks Consensus Estimate has remained constant at 67 cents per share over the last 60 days.

The Zacks Consensus Estimate for fiscal 2013 has remained steady at $2.09 per share over the last 60 days. For fiscal 2014, the Zacks Consensus Estimate increased a penny to $2.57 per share over the same period.

Other Stocks to Consider

Investors can also consider other technology stocks that are doing well right now. These include Netflix (NFLX - Analyst Report), Zillow (Z - Snapshot Report) and CIT Group (CIT - Analyst Report). All these stocks carry the same rank as Fidelity.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.80 +7.04%
TRAVELCENTE… TA 11.84 +6.38%
BANCO DO BR… BDORY 14.74 +5.66%
AIR INDUSTR… AIRI 9.99 +4.15%
EQT MIDSTRM… EQM 98.14 +3.38%