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Fidelity National Information Services (FIS) Outpaces Stock Market Gains: What You Should Know

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Fidelity National Information Services (FIS - Free Report) closed at $55.33 in the latest trading session, marking a +1.73% move from the prior day. This change outpaced the S&P 500's 0.14% gain on the day. Meanwhile, the Dow gained 0.22%, and the Nasdaq, a tech-heavy index, added 0.09%.

Coming into today, shares of the banking and payment technologies company had lost 5.08% in the past month. In that same time, the Business Services sector lost 1.3%, while the S&P 500 lost 1.27%.

Wall Street will be looking for positivity from Fidelity National Information Services as it approaches its next earnings report date. On that day, Fidelity National Information Services is projected to report earnings of $1.58 per share, which would represent a year-over-year decline of 9.2%. Our most recent consensus estimate is calling for quarterly revenue of $3.65 billion, up 1.2% from the year-ago period.

FIS's full-year Zacks Consensus Estimates are calling for earnings of $6.02 per share and revenue of $14.6 billion. These results would represent year-over-year changes of -9.47% and +0.5%, respectively.

Any recent changes to analyst estimates for Fidelity National Information Services should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.14% higher. Fidelity National Information Services is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Fidelity National Information Services is holding a Forward P/E ratio of 9.04. Its industry sports an average Forward P/E of 13.86, so we one might conclude that Fidelity National Information Services is trading at a discount comparatively.

It is also worth noting that FIS currently has a PEG ratio of 0.87. 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 1.27 at yesterday's closing price.

The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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