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Fidelity National (FIS) Up 14% in 3 Months: More Room to Run?
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Shares of Fidelity National Information Services, Inc. (FIS - Free Report) have gained 14.1% in the past three months compared with the industry’s rise of 9.4%. The Business Services sector rose 10.5% and the S&P 500 composite index increased 8.8% in the same time frame. With a market capitalization of $36.2 billion, the average volume of shares traded in the last three months was 5.6 million.
Expanding recurring revenues, acquisitions and new product development, technology advancements and a strong cash position continue to drive Fidelity National.
The Zacks Consensus Estimate for FIS’ 2024 earnings is pegged at $4.34 per share, implying a 23.6% rise from the 2023 estimated figure. The consensus mark for revenues is pegged at $10.2 billion, indicating an improvement of 3.4% from the 2023 estimated figure.
Image Source: Zacks Investment Research
Can FIS Retain the Momentum?
The top line of Fidelity National continues to benefit from the sound performances of its Banking Solutions and Capital Market Solutions segments. New client wins aid the Banking unit, while solid sales growth boosts recurring revenues in the Capital Markets business. Though most of its revenues are generated from U.S. clients, FIS has exposure to the markets of the U.K., Germany, Australia, Brazil and Canada as well.
This Zacks Rank #3 (Hold) company pursues organic growth strategies and acquisitions, which, in turn, continue to fetch multi-year recurring contracts. Pursuant to the organic growth efforts, Fidelity National comes up with advanced solutions and undertakes sales and marketing efforts in a bid to boost its client base and expand across addressable markets.
Buyouts are a means to enhance the company’s portfolio offerings, diversify customer base, bolster geographic reach and foray into new markets. FIS plans to divest the Worldpay Merchant Solutions business to private equity funds managed by GTCR, which is expected to conclude in the first quarter of 2024, subject to regulatory nod and other customary closing conditions. Out of the funds generated from the divestiture, the company aims to return more value to shareholders.
The ongoing digitization across every sphere of life provides the perfect ground for Fidelity National to capitalize on with its technology solutions suite. FIS undertakes investments related to technologies, processes and infrastructure upgradation. This, in turn, aims to bring improved operational efficiencies.
A solid cash position and adequate cash-generating abilities enable Fidelity National to pursue business investments. The financial strength also imparts FIS the ability to return wealth to shareholders in the form of share buybacks and dividend payments. It plans to buy back a minimum of $3.5 billion of shares by 2024-end. Its dividend yield of 3.4% remains higher than the industry’s figure of 0.8%.
Stocks to Consider
Some better-ranked stocks in the Business Services space are PagSeguro Digital Ltd. (PAGS - Free Report) , Fiserv, Inc. (FI - Free Report) and Republic Services, Inc. (RSG - Free Report) . While PagSeguro Digital currently sports a Zacks Rank #1 (Strong Buy), Fiserv and Republic Services carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
PagSeguro Digital’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average beat being 8.95%. The consensus estimate for PAGS’ 2024 earnings suggests 15% growth from the 2023 estimated figure. The consensus mark for revenues indicates growth of 11.1% from the 2023 estimated figure.
The consensus estimate for PAGS’ 2024 earnings has moved 4.4% north in the past 60 days. Shares of PagSeguro Digital have gained 69.5% in the past three months.
Fiserv’s earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters and matched the mark twice, the average surprise being 0.58%. The consensus estimate for FI’s 2024 earnings indicates a rise of 14.6% from the 2023 estimated figure. The consensus mark for revenues suggests an improvement of 8% from the 2023 estimated figure.
The consensus estimate for FI’s 2024 earnings has moved 0.2% north in the past 30 days. Shares of Fiserv have gained 21.2% in the past three months.
Republic Services’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 8.94%. The consensus estimate for RSG’s 2024 earnings suggests 8.6% growth from the 2023 estimated figure. The consensus mark for revenues indicates growth of 6.3% from the 2023 estimated figure.
RSG boasts an impressive Value Score of B. Shares of Republic Services have gained 12.5% in the past three months.
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Fidelity National (FIS) Up 14% in 3 Months: More Room to Run?
Shares of Fidelity National Information Services, Inc. (FIS - Free Report) have gained 14.1% in the past three months compared with the industry’s rise of 9.4%. The Business Services sector rose 10.5% and the S&P 500 composite index increased 8.8% in the same time frame. With a market capitalization of $36.2 billion, the average volume of shares traded in the last three months was 5.6 million.
Expanding recurring revenues, acquisitions and new product development, technology advancements and a strong cash position continue to drive Fidelity National.
The Zacks Consensus Estimate for FIS’ 2024 earnings is pegged at $4.34 per share, implying a 23.6% rise from the 2023 estimated figure. The consensus mark for revenues is pegged at $10.2 billion, indicating an improvement of 3.4% from the 2023 estimated figure.
Image Source: Zacks Investment Research
Can FIS Retain the Momentum?
The top line of Fidelity National continues to benefit from the sound performances of its Banking Solutions and Capital Market Solutions segments. New client wins aid the Banking unit, while solid sales growth boosts recurring revenues in the Capital Markets business. Though most of its revenues are generated from U.S. clients, FIS has exposure to the markets of the U.K., Germany, Australia, Brazil and Canada as well.
This Zacks Rank #3 (Hold) company pursues organic growth strategies and acquisitions, which, in turn, continue to fetch multi-year recurring contracts. Pursuant to the organic growth efforts, Fidelity National comes up with advanced solutions and undertakes sales and marketing efforts in a bid to boost its client base and expand across addressable markets.
Buyouts are a means to enhance the company’s portfolio offerings, diversify customer base, bolster geographic reach and foray into new markets. FIS plans to divest the Worldpay Merchant Solutions business to private equity funds managed by GTCR, which is expected to conclude in the first quarter of 2024, subject to regulatory nod and other customary closing conditions. Out of the funds generated from the divestiture, the company aims to return more value to shareholders.
The ongoing digitization across every sphere of life provides the perfect ground for Fidelity National to capitalize on with its technology solutions suite. FIS undertakes investments related to technologies, processes and infrastructure upgradation. This, in turn, aims to bring improved operational efficiencies.
A solid cash position and adequate cash-generating abilities enable Fidelity National to pursue business investments. The financial strength also imparts FIS the ability to return wealth to shareholders in the form of share buybacks and dividend payments. It plans to buy back a minimum of $3.5 billion of shares by 2024-end. Its dividend yield of 3.4% remains higher than the industry’s figure of 0.8%.
Stocks to Consider
Some better-ranked stocks in the Business Services space are PagSeguro Digital Ltd. (PAGS - Free Report) , Fiserv, Inc. (FI - Free Report) and Republic Services, Inc. (RSG - Free Report) . While PagSeguro Digital currently sports a Zacks Rank #1 (Strong Buy), Fiserv and Republic Services carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
PagSeguro Digital’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average beat being 8.95%. The consensus estimate for PAGS’ 2024 earnings suggests 15% growth from the 2023 estimated figure. The consensus mark for revenues indicates growth of 11.1% from the 2023 estimated figure.
The consensus estimate for PAGS’ 2024 earnings has moved 4.4% north in the past 60 days. Shares of PagSeguro Digital have gained 69.5% in the past three months.
Fiserv’s earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters and matched the mark twice, the average surprise being 0.58%. The consensus estimate for FI’s 2024 earnings indicates a rise of 14.6% from the 2023 estimated figure. The consensus mark for revenues suggests an improvement of 8% from the 2023 estimated figure.
The consensus estimate for FI’s 2024 earnings has moved 0.2% north in the past 30 days. Shares of Fiserv have gained 21.2% in the past three months.
Republic Services’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 8.94%. The consensus estimate for RSG’s 2024 earnings suggests 8.6% growth from the 2023 estimated figure. The consensus mark for revenues indicates growth of 6.3% from the 2023 estimated figure.
RSG boasts an impressive Value Score of B. Shares of Republic Services have gained 12.5% in the past three months.